import substitution may be defined as a policy, placing the imported goods by domestically produced goods. under the policy of import substitution ,the domestic demand for imports is sought to be met by domestic production of goods that aresimilar tothe imported goods or catering to the same requirements that imported goods are meting the idea is toproduce at home most of such goods that we have been importing or continue to import thus importsubstitution creates demand for domestically produced goods.