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The Origins of Import Substituting Industrialization in India

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  • Tirthankar Roy

Abstract

In the post-war world, India was one of the most protectionist countries. Protectionism originated in British colonial measures to design an industrialization policy in the 1920s. Whereas in the 1920s, protection was applied with discrimination, after independence in 1947, protection was offered without discrimination. The paper explains how this transformation came into being. It rejects the hypothesis now current that discriminating protection was dropped because it was a weak policy, and suggests instead that the aspirations of nationalistic businesses played a role.

Suggested Citation

  • Tirthankar Roy, 2017. "The Origins of Import Substituting Industrialization in India," Economic History of Developing Regions, Taylor & Francis Journals, vol. 32(1), pages 71-95, January.
    • Handle: RePEc:taf:rehdxx:v:32:y:2017:i:1:p:71-95
    DOI: 10.1080/20780389.2017.1292460
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    References listed on IDEAS

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    1. Edwards, Sebastian, 1998. "Openness, Productivity and Growth: What Do We Really Know?," Economic Journal, Royal Economic Society, vol. 108(447), pages 383-398, March.
    2. Roy,Tirthankar, 2012. "India in the World Economy," Cambridge Books, Cambridge University Press, number 9781107401471, July.
    3. Bishnupriya Gupta, 2011. "Wages, unions, and labour productivity: evidence from Indian cotton mills," Economic History Review, Economic History Society, vol. 64(s1), pages 76-98, February.
    4. Barry Bosworth & Susan M. Collins, 2008. "Accounting for Growth: Comparing China and India," Journal of Economic Perspectives, American Economic Association, vol. 22(1), pages 45-66, Winter.
    5. Roy,Tirthankar, 2012. "India in the World Economy," Cambridge Books, Cambridge University Press, number 9781107009103, July.
    6. Henry J. Bruton, 1998. "A Reconsideration of Import Substitution," Journal of Economic Literature, American Economic Association, vol. 36(2), pages 903-936, June.
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    Cited by:

    1. Vellore Arthi & Markus Lampe & Ashwin Nair & Kevin Hjortshøj O’Rourke, 2024. "Deliberate Surrender? The Impact of Interwar Indian Protection," The Economic Journal, Royal Economic Society, vol. 134(657), pages 23-47.
    2. Roy, Tirthankar, 2021. "Useful & reliable: technological transformation in colonial India," LSE Research Online Documents on Economics 113442, London School of Economics and Political Science, LSE Library.
    3. Vellore Arthi & Markus Lampe & Ashwin Nair & Kevin Hjortshøj O'Rourke, 2020. "The Impact of Interwar Protection: Evidence from India," Oxford Economic and Social History Working Papers _180, University of Oxford, Department of Economics.

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