import substitution


Also found in: Financial.

import substitution

the process whereby countries begin to produce certain goods for themselves instead of importing them. Given the heavy reliance of many THIRD WORLD countries on importing manufactured goods, one strategy they have tried to adopt is that of import-substitution industrialization. This has been successful where the goods can be produced with simple machinery and low capital costs. However, many countries have run into problems when such manufacturing involves high capital costs, complex machinery which they do not produce themselves, or labour and technical skills which they do not possess. In such cases, instead of diversifying their economies, and becoming less reliant on manufactured exports, they have often witnessed a new set of problems with dependency on foreign capital and technical knowledge. Further, since the 1970s, the experience of starting up industries and the provision of the necessary infrastructure has led to the creation of INTERNATIONAL DEBT. see also DEPENDENCY THEORY.
References in periodicals archive ?
Talking to a business delegation, Abdul Razak Dawood, the prime minister's aide, underlined 'it is imperative to enhance the industrial base for revitalisation of the economy and industrial growth.' He emphasised that expansion of the industrial base would lead to industrial growth, competitive import substitution, export enhancement, employment creation and revenue generation.
Thaver said the union hopes the new CEO would comprehend the requirements of the sector for subsidized finance, setting up of Special Economic Zones for SMEs, filling of technological gap, global marketing support and tax relief and incentives for innovative, import substitution industries, facilitating, supporting, motivating and encouraging the farm sector and agro based units.
To increase exports in non-conventional and value-added sectors, the government must first encourage local import substitution and provide a favourable environment to industry.
PWC, however, noted that if the CBN effectively executes its five-year monetary policy thrust to boost economic activities and output, especially with respect to inducing credit to the real sector, agriculture activities and small and medium enterprises (SMEs), there will boost in domestic production which will result in enhancing the import substitution policies of the Federal government (FG).
"It means we are having import substitution," he said.
Petersburg International Economic Forum, Rosneft and Voronezh region entered into a cooperation agreement on developing import substitution. The document was signed by Rosneft CEO Igor Sechin and Governor of Voronezh Region Alexander Gusev.
Summary: New Delhi [India] June 11 (ANI/BusinessWire India): Rostec State Corporation, Russian Railways and VEB.RF (Vnesheconombank) have signed a roadmap for import substitution of digital products used in the railway industry.
Only if our economic managers had reformed the tax machinery in a way so as to widen the tax net without further burdening existing taxpayers, only if we had decided to develop our industrial base for employment, import substitution and revenue generation and if only we had focused on value-added exports to curb trade imbalance.
The memorandum envisages creation of a new website for import substitution and support for SMEs in Azerbaijan.
Local producersquestion if there is a need tocorrect market conditions tofavor local businesses.The economic affairsministry has prioritizedCSI sector in the 12th Planfor import substitution.However, Economic AffairsMinister Loknath Sharmatold Business Bhutan thatthe ministry cannot imposerestrictions on import as ameans to promote domesticproducts.
CEO IMC, Ali Asghar Jamali said, 'Localization create jobs, provide import substitution, secure foreign exchange and contribute phenomenally towards Pakistan GDP.All these factors are needed to reduce trade deficit and to improve macroeconomic condition.
To a question about Indian ban and imposition of 200 percent custom duty on Pakistani goods, he said it's now time for our industry to show self-reliance on cotton production and import substitution for dyes and chemicals.