What is the likely impact of import substitution on the PPC relating to domestic production ? Illustrate diagram. 

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import substitution wouldnt make any change in ppc. As it already depicted fully and efficiently employed, it will not show any change in ppc. because import substitution is substituting domestic goods against import of foreign goods.
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PPC refers to the production possibility curve or frontier . Now import substitution means that we should reduce our foreign dependency . That is domestic production should increase to meet our consumption demands and we must reduce imports of foreign goods . Import substitution policy will lead to fullest exploitation of domestic resources and growth of production in the country . Allocation of means of production will be done in a more efficient way . So naturally the overall output or growth will rise . Hence the PPC will shift outward .
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