Sanket Bhatia

The process of liberalization in India: Foreign direct investment and the Indian auto industry Sanket Bhatia

Scholarly Research Paper from the year 2005 in the subject Business economics - Economic and Social History, grade: 1,3, Hamburg University of Technology (DepartmentofTechnologyandInnovationManagement), 19 entries in the bibliography, language: English, comment: The general consensus is that the process of economic liberalization that started in the late 1980's in India is slowly coming to fruition, resulting in stellar economic growth. The present work discusses the route that economic liberalization has taken over the past 20 years, and then goes on to discuss the direct effect of liberalization on the Indian automotive industry. This work may be taken as background reading for a more detailed look into the state of the Indian automotive industry. , abstract: The Indian economy continues to achieve stellar growth. The accepted opinion is that the process of economic liberalization that started in the late 1980's in India has come to fruition, and, combined with a strong resource base (mainly the strong knowledge base of trained engineers combined with innovation brought in by multinational companies), continues to drive the growth in recent years. The present work provides a brief background of the process of liberalization, both its successes and challenges. The work goes on to describe the effect of economic liberalization on the Indian automotive industry. The transformation of the automotive industry in the post-liberalization years is nothing short of dramatic. This transformation is discussed using different parameters, and some critical issues that face the industry in India are conjectured. The work may be taken as an introductory- to middle-level reading on the Indian automotive industry, and can form the basis of a detailed critical examination of important issues facing the industry today.