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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

Author

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  • Biswajit Nag

    (Indian Institute of Foreign Trade (IIFT))

Abstract

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.

Suggested Citation

  • Biswajit Nag, 2011. "Trade liberalization and international production networks: Experience of the Indian automotive sector," STUDIES IN TRADE AND INVESTMENT, in: Mia Mikic & Mochamad Pasha (ed.), Fighting Irrelevance: The Role of Regional Trade Agreements in International Production Networks in Asia, chapter 5, pages 100-130, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP).
    • Handle: RePEc:unt:ecchap:tipub2597_chap5
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    Citations

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    Cited by:

    1. Smitha Francis, 2015. "INDIA’S MANUFACTURING SECTOR EXPORT PERFORMANCE DURING 1999-2013: A Focus on Missing Domestic Inter-Sectoral Linkages," Working Papers 182, Institute for Studies in Industrial Development (ISID).

    More about this item

    Keywords

    trade liberalization; international production networks; regional trade agreements; value chain; Asia; automotive; East Asia; India;
    All these keywords.

    JEL classification:

    • F1 - International Economics - - Trade
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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