The automotive industry in India has had to maneuver its way through an obstacle—ridden past. Its growth stems from the persevering vision of the auto manufacturers and the Government’s gradual response to their desires to make the market competitive. However, the factor that led to its growth are wide and varied. Here is a brief chronicle of the evolution of the Indian automobile policy.
In the years following Independence, the Government of India, having realized the economic and strategic importance of the automotive industry decided to direct the flow of investment into this sector. This also meant that a set of complex rules, regulations and an elaborate network of policies were brought in to control the industry.
Back In 1945 the Government’s Statement of Industrial Policy had been centralized, to harness the potential of the automobile industry. The value of the industry was seen as something that needed to be controlled and nurtured so that the country would benefit from its growth. The Industrial Policy Resolution of 1948 - the pivotal legislation in this respect was passed to enable central regulation or control.
In the years following Independence, the Government of India, having realized the economic and strategic importance of the automotive industry decided to direct the flow of investment into this sector. This also meant that a set of complex rules, regulations and an elaborate network of policies were brought in to control the industry.
Back In 1945 the Government’s Statement of Industrial Policy had been centralized, to harness the potential of the automobile industry. The value of the industry was seen as something that needed to be controlled and nurtured so that the country would benefit from its growth. The Industrial Policy Resolution of 1948 - the pivotal legislation in this respect was passed to enable central regulation or control.