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Regional Impact of Automobile Policy in India

In: Economy-Wide Assessment of Regional Policies in India

Author

Listed:
  • Unnada Chewpreecha

    (Cambridge Econometrics)

  • Vishnu S. Prabhu

    (Gokhale Institute of Politics and Economics)

  • Kakali Mukhopadhyay

    (Gokhale Institute of Politics and Economics
    McGill University)

Abstract

In India, the performance of the automobile industryAutomobile industry is considered as a key macroeconomic indicator due to its overwhelming contribution to the national economy. The sector is currently undergoing a transitional phase, spearheaded by the Electric Vehicle (EV)Electric Vehicles (EVs) adoption as well as the COVID-19 pandemic which have been evaluated using the E3-India model. The automobile and auto-componentsAuto-component industry industries have significant indirect impact on ancillary industries in smaller states, however, the magnitude of imports does not decrease due to limited domestic infrastructural capabilities. The impact of EVsElectric Vehicles (EVs) should be simultaneously met with a transition in power sector towards RE sources, otherwise the contribution towards reduction in CO2 emissions will remain underwhelming. The pandemic which brought the automobile industry to a stand-still needs to be reinvigorated through various demand-side incentives to induce confidence amongst the manufacturers.

Suggested Citation

  • Unnada Chewpreecha & Vishnu S. Prabhu & Kakali Mukhopadhyay, 2021. "Regional Impact of Automobile Policy in India," Springer Books, in: Kakali Mukhopadhyay (ed.), Economy-Wide Assessment of Regional Policies in India, chapter 0, pages 193-234, Springer.
    • Handle: RePEc:spr:sprchp:978-3-030-75668-0_7
    DOI: 10.1007/978-3-030-75668-0_7
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