The government may also also hike import duties on some of the products in the budget.
The government is looking to reduce imports of more than 350 "non-essential" items such as toys, textiles, footwear and electronic goods to give the Make in India initiative a push, a report in The Times of India has said.
Several ministries, including textiles, electronics and IT and commerce and industry, have been asked to take action on the list of identified products.
Moneycontrol could not independently verify the report.
The government was also considering the suggestion to do away with global tender for government procurement in industries where domestic demand was enough, sources told The Times of India.
Public sector companies had been asked to mention their requirements for products and specifications for the next five to six years to assess domestic demand, the report said.
The first step was expected to be quality control for toys, the report said.
The government might also announce import duty hikes on some products in the budget.
The government is of the view that increasing import duties products such as television sets and mobile phones would give a boost to domestic manufacturing.
Electronic goods form a bulk of India’s trade deficit. Officials say this was due to India signing the World Trade Organization’s Information Technology Agreement, which permits duty-free import of several electronics goods, the report said.The government was also considering investments from international companies to set up manufacturing facilities in India, the report said.Get access to India's fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code "GETPRO". Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.