This document discusses the role of entrepreneurs in import substitution. It defines import substitution industrialization as a policy of replacing foreign imports with domestic production to decrease dependence on other countries. Entrepreneurs help achieve the goals of import substitution by establishing new domestic industries, efficiently using resources to increase production and GDP, and directing the economy toward growth. The "Make in India" program is provided as an example of import substitution in India aimed at making the country more self-sufficient. Potential advantages include increased employment and economic growth, while disadvantages can include inefficiencies and lack of technology.

1. Role of Entrepreneur
in Import Substitution
A Presentation by :-
1.) Hardik Bhaavani
2.) Sagar Pujara

2. Import Substitution
• Import Substitution Industrialization (ISI) is a trade and
economic policy which advocates replacing foreign
imports with domestic production.
• Import Substitution Industrialization (ISI) is a theory of
economics typically adhered to by developing countries
or emerging market nations that seek to decrease their
dependence on developed countries and increase their
self-sufficiency.
• It heavily relies on the Internal Resources of a Country.
• (Note :- ) Do not Confuse ISI with ISI Mark, i.e., Indian
Standard Items Mark on various products certified by BIS
(Bureau of Indian Standards).

3. Some Points to Import
Substitution

4. • Import Substitution is in best viewed with the Example of
China for the Global Economy.
• China has almost every product which is a Substitute of its
Foreign Counterpart.
• For Example :- they have their own Chinese version of
“Google” known as “Baidu”. They have their own version of
“Twitter” known as “Weibo”. This does not restrict itself to
the Technological Industry only but it extends to almost all
the Industries in the Global Presence.
• India is a Country in which there is a heavy craze for Foreign
Brands and Multinational Corporations. That is the reason
why domestic producers don’t capture a large market share.
• That is why it is important for us to adopt the Policy of
Import Substitution which helps in boosting the Economic
Growth.

6. Progress on Import Substitution in
India
• “Make in India” is a type of Swadeshi Movement
to encourage companies to manufacture their
Products in India.
• This is a Pure Example of Import Substitution.
• This Helps in making India a Self-sufficient
Country which is able to satisfy its market
demand.
• It also helps in Creating a Global Image for
Indian Products in the International Market to
compete against Chinese products Globally.

7. Advantages and Disadvantages of
Import Substitution
Advantages
• Increased Employment Rate
• Increases Economic Growth
• Efficient Utilization of
Natural Resources
• Global Competitiveness
• Quality-Focused
• Innovations in Product
• Lower Cost of Production
and Transportation
Disadvantages
• Maybe an Inefficient Unit which
results into losses
• Not having required Technology
for Production
• Lack of Developed Capital Goods
Industry to Support the
Substitution
• Results into inequality of Income
Distribution (Agricultural Sector)
• May result into heavy losses for
foreign firms who have made the
Huge Investment beforehand
(Electronic Goods)

8. Economic Growth
• Many countries view Industrialization as the
Pathway for Economic Growth.
• The Economic Growth is a Problem for
Developing countries only and is not a problem
for Developed Countries.
• Import Substitution promotes Industrialization in
the Economy.
• The Main aim of Import Substitution is to
Improve and Correct the Balance of Payments in
order to emerge as a Self-Sufficient Economy.

9. Entrepreneur – Economic Growth
Relationship
• Entrepreneur’s main task is to Create Jobs and to be
in a Job. This is achieved by setting up New
Industries in the Economy.
• The Entrepreneur helps in Efficient and Maximum
Utilization of Natural Resources of the Economy
which in turn increases the Production Capacity and
this leads to an Increase in GDP { Gross Domestic
Product } (an Indicator of Economic Growth).
• Entrepreneurs Direct the Economy towards Growth
and Development by enabling Industrialization in
the Country.

10. Objects and Aims of Import Substitution
fulfilled by an Entrepreneur
• To promote Domestic Industry at the Expense
of Foreign Industry. (Electronic Goods)
• To protect the Domestic Manufacturing and
Service Sector.
• To shift Domestic Income in Distribution in
favour of Entrepreneurs and Workers within
Industry.
• To create Employment in the Industrial Sector
and Services Sector.

11. Measures of Import Substitution
• Having a Control on Imports. ( Customs,
Duties, Taxes, etc. )
• Promoting Foreign Capital and Technology (
Make in India ) to produce the goods of own
needs and thus reducing the volume of
imports.
• Entering into New Fields of Industry,
Manufacturing and Servicing. ( Innovations )

12. Conclusion

13. • So from above, we see the Importance of a Policy like Import
Substitution for any Economy of the World.
• It is a Policy which can lead to Tremendous Economic Growth
and the absence of any Policy like it would result into a Weaker
Economy.
• This Policy is what makes America a Superpower and because of
this the value of Goods Internationally is Considered in American
Dollars $ only.
• Import Substitution Policy is just as Important to a Country as
any of its Taxation Policy. Without such a Policy an Economy
would become Economically Weaker and Backward in the World
and would be called as a Dependent Country. Example :-
Pakistan takes Money on Loans from China. Thus, Pakistan relies
heavily on them.
• India is on the Tracks of Having a Greater Import Substitution
Policy (Make in India) but the Fruits of it will be visible in the
Long-term.

14. Thank You