Benevolent benefactor or insensitive regulator? : tracing the role of government policies in the development of India's automobile industry

Tiwari, Rajnish; Herstatt, Cornelius; Ranawat, Mahipat

Benevolent benefactor or insensitive regulator? : tracing the role of government policies in the development of India's automobile industry

Files

ps058.pdf (1.52 MB)

Date

2011

Authors

Tiwari, Rajnish

Herstatt, Cornelius

Ranawat, Mahipat

Publisher

Honolulu, HI : East-West Center

Abstract

The impressive and sustained growth of India's automobile industry in recent years has catapulted it into the league of the world's top-seven producers of four-wheelers. In the past decade, its exports have surged more than 25 percent a year on average. The turning point was arguably the 1991 policy of economic liberalization, but the impact of the reforms might have been subdued, if the Government of India had not played a pivotal role in the industry's evolution. This apparent "paradox" may be the key to understanding why the industry has adjusted so quickly to globalization, even though economic reforms began relatively late. This study identifies the main thrusts of policy regimes for the automobile sector since 1947, which began in an overregulation mode in the early period of independence. Nonetheless, the government consciously attempted to create and sustain favorable "innovation systems" at national, regional, and sectoral levels. Especially since 1991, many policy initiatives have benefited the industry and helped it reach the growth path it is following today.

Description

For more about the East-West Center, see http://www.eastwestcenter.org/

Keywords

Automobile industry and trade - Government policy - India, Automobile industry and trade - India - History - 20th century

URI

http://hdl.handle.net/10125/19971

Extent

xiv, 64 p.

Collections

East-West Center (Washington, D.C.). Policy Studies

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