From import substitution to integration into global production networks: The case of the Indian automobile industry

    Research output: Contribution to journalArticle

    Abstract

    This paper examines the growth trajectory and the current state of the Indian automobile industry, paying attention to factors that underpinned its transition from import substitution to integration into global production networks. Market-conforming policies implemented by the government of India over the past 2 decades, which marked a clear departure from protectionist policies in the past, have been instrumental in transforming the Indian automobile industry in line with ongoing structural changes in the world automobile industry. India has emerged as a significant producer of compact cars within global automobile production networks. Compact cars exported from India have become competitive in the international market because of the economies of scale of producing for a large domestic market and product adaptation to suit domestic market conditions. Interestingly, there are no significant differences in prices of compact cars sold in domestic and foreign markets. This suggests that the hypothesis of "import protection as export promotion" does not hold for Indian automobile exports.
    Original languageEnglish
    Pages (from-to)72-99
    JournalAsian Development Review: Studies of Asian and Pacific Economic Issues
    Volume36
    Issue number2
    DOIs
    Publication statusPublished - 2019

    Fingerprint Dive into the research topics of 'From import substitution to integration into global production networks: The case of the Indian automobile industry'. Together they form a unique fingerprint.

    Cite this