Import Substitution : a 10 Year long Journey
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Substitution: From a 2015 Blueprint to a 2025 Imperative
The Commerce Department is preparing a list
of 100 critical imports (chemicals, pharma inputs, engineering goods,
etc.) to boost local production. This is undoubtedly a step in the right
direction.
But here’s the truth: India had this opportunity
a decade ago.
Back in September 2015, I had written a blog
proposing a detailed strategy to transform India’s import dependence into a
nationwide job-creation movement. I called for 5,000 imports to be
systematically replaced by domestic production through a structured Detailed
Project Report (DPR) mechanism.
This was not just theory. It was a practical,
implementable blueprint — one that would have already reduced our dependence on
critical imports today, had it been adopted.
Tabulated
Comparison
Aspect |
Govt’s
Current Step (2025) |
My Original
Proposal (2015) |
Objective |
Identify 100 key imports for local substitution. |
Replace 5,000 imports through a Make in India web
portal. |
Approach |
Ministry-driven identification &
consultations. |
Crowd-sourced: 1,000 manufacturers pick items
& prepare DPRs. |
Execution |
Govt to seek new producers, explore capacity. |
MSMEs + Engineering graduates prepare DPRs,
backed by banks, mentored by retired experts. |
Youth Involvement |
Indirect (consultations with firms). |
Direct: Each manufacturer trains 100+ fresh
engineers yearly under Graduate Engineer Training (GET). |
Incentives |
Yet to be announced (PLI/subsidies expected). |
Bold package: 200% tax deduction on GET training,
10-year tax holiday for startups, CSR classification for DPR costs. |
Transparency |
Only a list of 100 items to be shared. |
Public display of DPR selections to avoid
duplication & ensure accountability. |
Scale |
Limited to 100 imports for now. |
Designed for 5,000+ products, starting with top
100, scaling nationwide. |
Outcome |
Import reduction and sectoral resilience. |
Import substitution + MSME growth + job
creation + entrepreneurship revolution. |
Why the 2015
Proposal Still Matters
- It was ahead of its time: In
2015, I argued that import substitution must be linked with youth
employment, MSMEs, and tax incentives.
- It scales better: The
Govt’s current 100-product list is a pilot. My proposal was designed for thousands
of items, with built-in mechanisms for scale.
- It’s job-centric: The
2015 plan integrates fresh engineers and MSMEs, converting
job-seekers into job-creators.
A Timely
Revival in 2025
In my August 2025 blog — Retaliate Without Escalating: India’s
Smart Response to Tariff Threats — I revived this very idea,
framing it as a non-escalatory response to global tariff pressures.
Now that the government is finally moving towards
import substitution, it must not stop at identification. It must adopt
the 2015 DPR-based framework, which is:
- Transparent
- Scalable
- Job-creating
- Non-provocative under WTO norms
Call to
Action
The Government has taken the first step —
identifying 100 critical imports.
But the next step is crucial: adopt the 2015 DPR mechanism to
transform this from a bureaucratic list into a mass movement of factories,
MSMEs, and young engineers.
This is how India will retaliate smartly,
without escalating trade wars — and truly become the human resource and
manufacturing hub of the world.