| Summary: | The theory of competitive advantages can be used to guide an overview
concept of the competitiveness advantages of Nations. This theory is used to
understand how Indian government's role in improving the global competitiveness
of domestic automotive industries. Two main points of the policy of the Indian
government are lead to the presence of Foreign Direct Investment and national
efforts to create conditions conducive to the development of the industry.
Government plays a big role in determining the strategic steps appropriately. The
accuracy of this step is essential in ensuring the establishment of competitiveness
advantages of domestic industries. FDI invited into the country to let the domestic
industry experience global competition. Government regulations of stimulation
through the stages include new industrial policy in 1991, the auto policy in 2002,
and the Automotive Mission Plan 2006. This policy stages lead to build
liberalization, globalization and de-licensee. Various stages of policies related to
FDI is also driven by the creation of proper national conditions. Four
characteristics of national conditions conducive include production factors
(infrastructure), demand factors, factors related industries such as the factors of
strategy, structure and industry competitors. In addition, the government also
builds a cluster industry and encourages the development of research and
development. Indian government's efforts may eventually be able to expand
globally to the domestic industry successfully . There are Tata Motors, Maruti,
M& M, Bajaj, and TVS that can successfully entered into the global competition.
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