PMEAC's Rathin Roy says import substitution does not means controls

After the government constituted a task-force to look at import substitutions across five sectors, Prime Minister’s Economic Advisory Council (PMEAC) on Tuesday said import substitution does not means import controls.

In an exclusive interview to CNBC-TV18's Shereen Bhan, Rathin Roy, member, said, "The government’s announcement over the weekend, I think did two things. One, it showed to quote Charles Dickens that ‘Barkis is willin'. In the sense that let nobody be under misapprehension that one – the government will make sure the that it deploys all resources it has under its control. If someone in these circumstances tries to short the rupee and two there is no holy cow or bull or pig or other animal in our policy, which would inhibit the government from taking steps including taking a good hard look at what can be done with respect to import substitution.”

Roy said, "So what the government has done is offered some carrots on the left hand side in term of attracting foreign resources in and that is a short to medium term measure. It's also signal its willingness to take the bull by the horns and actively look at imports substitution in the medium term which sends a positive signal which I welcome."