Import substitution as a policy lost steam after India ushered the era of economic liberalisation in 1991. But now the government is exploring the possibility of boosting domestic production of items on whose imports India is heavily dependent. The strategy this time, however, is to do this without raising tariffs or providing subsidies.
The sustained rise in inbound shipments in recent months prompted officials from the commerce department to meet industry representatives last week over ways to boost domestic production of specific items. This, in turn, could provide a fillip to exports. They identified 102 items whose imports had surged