Indian Prime Minister Narendra Modi is taking steps to reduce key imports into the economy in order to protect supply chains and ease pressure on the currency as geopolitical risks escalate. The government's push aims to strengthen domestic manufacturing capabilities and reduce vulnerability to external shocks that have disrupted global trade flows in recent years.

Policy measures include production-linked incentive schemes targeting sectors like electronics, pharmaceuticals, and renewable energy equipment. These initiatives aim to boost local output while creating jobs and reducing the trade deficit that has weighed on the Indian rupee.

The strategy reflects a broader shift toward self-reliance (Atmanirbhar Bharat) as India navigates supply chain disruptions from the pandemic, regional conflicts, and trade tensions between major powers. Officials argue that reducing import dependence will provide greater economic sovereignty and stability.

Economists note the approach carries risks, including potential inefficiencies and higher costs for consumers if domestic industries cannot achieve competitive scale quickly enough.