Assessments

Can India's Auto Industry Become the Bedrock the Country Needs?

Oct 23, 2018 | 09:00 GMT
Employees assemble parts and make final inspections of Honda Activa scooters in Narasapura, on the outskirts of Bangalore, India.

Employees assemble parts and make final inspections of Honda Activa scooters in Narasapura, on the outskirts of Bangalore, India. The Activa is India's top-selling two-wheeled vehicle.

(MANJUNATH KIRAN/AFP/Getty Images)

U.S. President Donald Trump's threat of drastically raising tariffs on cars imported to the United States has unnerved the global automotive industry. Yet India appears unfazed. Washington and New Delhi have certainly sharpened their arrows as they jostle over disagreements on trade. Trump, who has called India the "tariff king," wants to chip away at the $23 billion bilateral trade deficit by gaining greater access to various sectors of the Indian market, including dairy and medical devices. And New Delhi has threatened to impose $241 million in retaliatory tariffs against Washington for refusing to grant waivers on its steel and aluminum shipments destined for the American market. But India's largely domestically focused automotive sector will fly beneath the radar of Trump's auto protectionism and continue to focus on serving a vast internal market of nearly 1.3 billion consumers....

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