文档介绍：Journal of Applied Economics and Business Research
JAEBR, 4(4): 246-262 (2014)
India’s automobile industry: Growth and export potential
Jatinder Singh1
Centre for Economic Studies and Planning, Jawaharlal Nehru University, New Delhi, India
Abstract
It may sound truism to understand the influence of changing policy set-up on the growth and development of automobile industry in India and to explore its export potential in context of the process of liberalization and globalization of the industry. Policy changes influence petitive advantages through their effects on economic environment in which the industry operates. The study at hand finds that the changing policy environment during the last three decades in the country has eventually contributed to the growth and export intensity of automobile industry. The influence of changing economic environment is also visible across sub- sectors of the industry. Passenger vehicles segment seems to be the only segment which has experienced considerably high growth and improvement in export intensity as well. The share of this segment in total exports of automobile industry is reported to have doubled over the years. The paper examines the implications and also raises issues for further research.
Jel Codes: L52, L62. Copyright © 2014 JAEBR
Key Words: Automobile industry; Policy regimes; Export potential; Technology capabilities;
Competitiveness
Introduction
The paradigm shift in India’s economic policy and specifically the industrial policy from a highly controlled regime to a de-controlled regime has appreciably changed the rules of game during last couple of decades (Ranawat and Tiwari, 2009; Kale, 2012). The advocates of neo-liberal policy regimes repeatedly argue that industrial sector in India would set on a new growth trajectory. It was believed that elimination of restrictions on capacity creation, entry of new firms, diversification and imports of capital goods and raw material would ease the supply side const