Tracing the Sources of Sluggish Local Production

Misguided forex policies, lack of commercial and financial ties with the world, ineffective system of local businesses and decades-long unhealthy macroeconomic environment are the main factors sapping the strength of the domestic production sector.
The above statement was made by Special Presidential Aide for Economic Affairs Masoud Nili in an article published by Iran Chamber of Commerce, Industries, Mines and Agriculture. Excerpts from the article follow:
Iranian officials have always promoted, in good faith, the idea of supporting local production and curtailing imports. There were periods of time when there were no imports, except for products that the country was unable to produce within its borders. Cheap energy and water, zero-interest loans and guaranteed local market without any foreign rivals were concessions made by policymakers for local producers. 
How have these policies shaped Iran’s economy and where does the country stand now in comparison to other economies?