Import Substitution Industrialization (ISI)

Import Substitution Industrialization (ISI) is an economic policy aimed at reducing a country's dependence on imported goods by fostering the development of local industries. The idea is to encourage domestic production of goods that are typically imported, thus promoting self-sufficiency, creating jobs, and developing local economies. Governments often support ISI through tariffs, subsidies, and other protective measures to help new industries grow. While ISI can stimulate economic growth in the short term, some critics argue that it may lead to inefficiencies and a lack of competitiveness in the long run if not managed carefully.