Import Substitution Industrialization (ISI) and Economic Growth

Abstract

Opportunity-10

The Government is planning to introduce an Import Substitution Policy to replace imports and boost domestic manufacturing in the wake of the current economic scenario due to Covid-19.

Of late there have been talks about import substitution because it is equally effective as export promotion in earning and saving foreign exchange and creating Jobs. Covid-19 will certainly lead to increasing localization everywhere,â€

Government is working on a scheme to promote businesses making ‘import substitute products and help the country to save foreign exchange.

Such a policies if implemented will provide an opportunity to the CMAs’ to render consultancy services to their clients to encourage import substitution MSME units in their areas of operation. This would not only help the country to save the foreign exchange reserves, increase in GDP, increase employment opportunities and reduce the regional imbalances but would also provide opportunities to the CMAs to spread their area of operation by providing consultancy services to the prospective promoters and start up MSME units.

To provide efficient services in this segment to their clients or prospective clients, CMAs need to update their knowledge on this subject through the following :

• Closely follow the Government of India Policies with regard ‘Import Substitution Industrialization in India’.
• Various schemes announced by Government of India through “AatmaNirbharbharat.MyGov.inâ€
• Ministry of Commerce Web-site.
• Ministry of MSMS Web-site.
• Directorate General of Foreign Trade/Ministry of Commerce Web-site.
• Small Industries Development Bank of India Web-site.
• Khadi and Village Industries Commission Web-site.
• Invest India (Your One-Stop Shop for Investing in India) – National Investment Promotion & Facilitation Agency. (https://www.investindia.gov.in/about-us).
• 'Make in India' concept which is an initiative by the Government of India to encourage companies to manufacture in India and incentivize dedicated investments into manufacturing. https://www.makeinindia.com/home.
• Reading latest articles/books ‘import substitution industrialization in India’.