Import Substitution

Import substitution is an aggressive economic policy employed by emerging economies to promote domestic production and self-sufficiency in many sectors. It is also seen as a means to reduce dependency on developed nations. IS seeks to provide added protection to domestic industries via tariffs, import quotas, government loans at subsidised rates of interest. This encourages

Overemphasis on services sector

“Overemphasis on services and neglect of the manufacturing sector can turn India’s demographic dividend into disaster.” Comment.