Indian Entrepreneurs in Import Substitution – Need of the Hour for Indian Economy | Original Article

ABSTRACT:

In the present era, where Multi-National Companies are trying to capture the Indian market, Indian entrepreneurs play a motivational role to establish their own enterprise and make opportunities for Indians to solve the problem of unemployment and contribute in the economic growth of India .Entrepreneurs serve as the catalysts for the process of rapid Industrialization and economic growth. It is an entrepreneur who collects the natural, economic, human and technical resources of a country and uses them in the economic growth of a country. According to Joseph Schumpeter, “The rate of economic progress of a nation depends upon its rate of innovation, which in turn depends upon distribution of entrepreneurial talent in the population.” India is facing a problem of Balance of Payment, so to solve this major problem, it is very essential to make policies for the benefit of the country. India must adopt a policy of self- reliance based on import substitution for economic as well as social growth. Import Substitution meant protection for domestic industry behind high tariff walls. It implied a policy of high profits. Import substitution is the process of getting self- dependence by manufacturing those products which can be produced by internal resources of country. It is an inward – looking type of industrialization. Import substitution strategy leads to high levels of effective protection. The currency becomes over – valued and exports are discouraged. Under this strategy relatively capital intensive and intermediate input intensive techniques of production are encouraged. The main objective of this paper is to represent the position of an entrepreneur in import substitution, actually it is ‘Need of the Hour’ and a great challenge for Indian economy to compete with other countries.