Strategic Approach to Strengthening International Competitiveness in Knowledge Based Industries: The Case of Indian Automotive Industry
Abstract: This study examines the export performance and prospects of the Indian automotive industry. The technology factor being critical, the in-house, collaborative and sponsored R&D needs greater encouragement. We also recommend an early upgradation of testing facilities, and move towards uniform standards; establishment of auto compo zones/ parks, and window showcasing centers; the industry-government partnership in manpower training; institutional provision of export marketing information, market development funds and branding assistance; and FTAs with more prosperous regions. Fixed investment abroad should be promoted, say through tax credit, with a geographical focus and in a coordinated fashion for vehicle and auto component producers.