Import Substitution : a 10 Year long Journey

 

Import Substitution : a 10 Year long Journey

 

 

 

 

 

 

mport 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.

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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.

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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.

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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

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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.