Competitiveness and Technology a Study of Automobile Sector in India

 Competitiveness and Technology a Study of Automobile Sector in India


Abstract

Despite the fact that the opening of the economy in the early 1990s provided the much-needed impetus, the Indian automobile industry has grown like never before in the last five years. With the changing economic conditions, particularly in the financial sector and foreign direct investment, an increasing number of global players are entering the Indian economy through joint ventures, collaborations with domestic firms, or wholly owned subsidiaries, resulting in increased competition among industry firms. Understanding the factors that determine a firm's competitive advantage has helped to assess its competitiveness in the Indian automobile industry.

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Introduction

The automotive industry, both globally and in India, is one of the most important sectors of the economy. The industry has a strong multiplier effect of industrial growth due to its deep forward and backward linkages with several major segments of the economy. The increase in efficiency and productivity helps to accelerate the efficiency of other sectors, both directly and indirectly, through the movement of goods and people in the economy. As a result, the industry is recognised as one of the key drivers of economic growth, contributing significantly to the nation's overall GDP. It has been identified as a sector with a high potential for increased exports and employment at various forums.

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Conclusion

Attempts have been made to create an index that reflects the competitiveness of firms in the Indian automobile industry. During the process, an attempt was also made to study the current state and evolution of the industry. A composite competitiveness index is defined as a mathematical combination of individual indicators representing different dimensions of the concept whose description is the analysis's goal.

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