To guide this strategy, the Survey outlines a tiered framework for strategic indigenization, categorizing sectors based on India's vulnerability if reliant on imports and the feasibility of scaling domestic capabilities. 

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The Economic Survey 2025-26, tabled ahead of the Union Budget, offers key insights into potential policy directions, particularly through its Chapter 16 titled "From Import Substitution to Strategic Resilience and Strategic Indispensability." Analysts and experts have highlighted this section as providing significant hints about sectors the government may prioritize for support, amid a shifting global landscape where globalization is seen as having ended. Protection, when provided, should be conditional, tied to production and upgradation targets, vigilantly monitored, and equipped with a clear sunset clause to prevent long-term inefficiencies.

To guide this strategy, the Survey outlines a tiered framework for strategic indigenization, categorizing sectors based on India's vulnerability if reliant on imports and the feasibility of scaling domestic capabilities. The top priorities—where protection or targeted support is deemed essential—fall into higher tiers. Tier 1 (non-negotiable, high-urgency sectors) includes goods absolutely essential for national needs, where self-sufficiency is critical.

These encompass oils and pulses (supported through procurement and demand assurance), fertilizer inputs (noting past disruptions like China's restrictions on special chemicals), APIs (active pharmaceutical ingredients), power, electronics, industrial chemicals, and telecom equipment—the latter viewed through the lens of national security. Here, measures could include time-bound import protection, government procurement, or other assurances to build domestic capacity.

The strategic core (another high-priority area) focuses on sectors where India has inherent advantages but needs acceleration in scale to integrate into global supply chains. Support here should be temporary, targeted, and linked to production targets. Examples include magnets, batteries, cells and cathodes, and solar (particularly wafers and cells).Lower tiers (Tier 2 and Tier 3) cover areas of lower strategic importance or longer-term capability building, where protection is discouraged as it could raise costs unnecessarily.

The Survey advises importing where cheaper foreign options exist, citing examples such as cranes, industrial machinery, EV drivetrains, medical devices, TBMs (tunnel boring machines), rail signaling, defense electronics, and electrolyzers. While not all recommendations in the Economic Survey translate directly into policy, market observers interpret these tiers as strong indicators of potential government focus. Sectors in the top tiers—especially Tier 1—may see enhanced support, such as through expanded Production-Linked Incentive (PLI) schemes or similar measures.

The chapter underscores a broader progression: from traditional import substitution to building strategic resilience (absorbing global shocks) and ultimately achieving strategic indispensability (positioning India as a reliable, value-adding player in global systems). This calibrated "disciplined Swadeshi" aims to strengthen national capabilities without fostering inefficiency.