India’s automobile industry: Growth and export potential

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 the competitive 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