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Trade liberalization and international production networks: Experience of the Indian automotive sector

In: Fighting Irrelevance: The Role of Regional Trade Agreements in International Production Networks in Asia

  • Biswajit Nag

    ()

    (Indian Institute of Foreign Trade (IIFT))

This chapter contains the sectoral case study on the Indian automotive sector. The automotive industry in India has thus undergone a transition, from comprising a few auto manufacturers, virtually no auto components makers and only low-quality auto ancillary producers to the league of global auto manufacturers, competitive component manufacturers and emerging ancillary producers. Several studies have revealed that previously the Indian automotive industry was not competitive enough for the global market due to inferior quality, lower labour productivity and high cost of raw materials in India (e.g., Pradosh and others, 2006). However, as in other markets, globalization has made the automotive market very competitive and brought profit margins to a very low level.

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This chapter was published in:
  • Mia Mikic & Mochamad Pasha (ed.), 2011. "Fighting Irrelevance: The Role of Regional Trade Agreements in International Production Networks in Asia," STUDIES IN TRADE AND INVESTMENT, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), number tipub2597, December.
  • This item is provided by United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) in its series STUDIES IN TRADE AND INVESTMENT with number tipub2597_chap5.
    Handle: RePEc:unt:ecchap:tipub2597_chap5
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