POLICY EVOLUTION AND STRUCTURAL TRANSFORMATION OF THE INDIAN AUTOMOBILE INDUSTRY- A THEORETICAL ANALYSIS

Abstract

The Indian automobile industry has evolved from a state-regulated sector to one of the biggest manufacturing ecosystems of the world. This theoretical study examines the chronological evolution of automobile-related policy reforms in India from the 1991 liberalization to the present. The study examines how competitiveness, technological advancement, and sustainability have been impacted by successive policy changes, drawing on significant reforms like the 1991 Industrial Policy, trade and import reforms, Industrial Policy 1993, the Auto Policy 2002, and the Automotive Mission Plans (AMP) 2006–2016 and 2016–2026. The analysis, which emphasises how policy design influences industrial restructuring, foreign investment, and innovation, is based on institutional perspectives and structural transformation. The findings indicate that reforms shifted from deregulation and liberalisation to industrial governance based on sustainability. While the shift to electric transportation and reliance on renewable energy are new difficulties, progressive policy continuity has improved productivity, export orientation, and integration into global value chains.