Determinants of Competitiveness of the Indian Auto Industry

Though not to the same extent as the telecom sector, the automobile and auto-component industry has also emerged as one of the recent success stories. As in all other countries, the Indian automobile industry is one of the key drivers of industrial growth and employment which will further gain in importance in the coming years. Its recent record
of rapid output growth, productivity improvements and expanding share in global markets has perhaps not been so well documented. This study fills that gap. The study will help us understand how the industry’s success is quite directly linked to the trade and industrial policy reforms initiated in the early 1990s. More importantly, the study will
identify the critical constraints that prevent the industry from further expansion in the global share and emerge as one of the major production and export hubs in the coming years.