From Import Substitution to Integration into Global Production Networks: The Case of the Indian Automobile Industry
Prema-chandra Athukorala () and
C. Veeramani ()
Additional contact information
C. Veeramani: Associate Professor, Indira Gandhi Institute of Development Research.
Asian Development Review, 2019, vol. 36, issue 2, 72-99
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 â€œimport protection as export promotionâ€ does not hold for Indian automobile exports.
Keywords: automobile industry; foreign direct investment; global production networks; India (search for similar items in EconPapers)
JEL-codes: F13 F14 L92 L98 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
Working Paper: From import substitution to integration into global production networks: the case of Indian automobile industry (2018)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:tpr:adbadr:v:36:y:2019:i:2:p:72-99
Ordering information: This journal article can be ordered from
https://mitpressjour ... rnal/?issn=0116-1105
Access Statistics for this article
Asian Development Review is currently edited by Yasuyuki Sawada and Naoyuki Yoshino
More articles in Asian Development Review from MIT Press
Bibliographic data for series maintained by Ann Olson ().