Competitiveness of Indian Manufacturing Industry:An Empirical Analysis

In the wake of globalization and liberalization, most of the Indian companies are facing problem for survival. International competitiveness is becoming important even for industries that were once considered very domestic. Many of them are not able to cope with the competition from the multinational companies, thus they have to close their shops. Top international manufacturing firms seem to be going through major strategic transformations to sustain competitiveness. Many have achieved remarkably high international business and are less dependent on domestic market. Strategic management can play a crucial role in achieving competitiveness. The performance of the industry could be measured along profitability, innovativeness or efficiency. The purpose of this paper is to examine the competitiveness of the Indian Manufacturing Industry with the help of the Structure-Conduct-Performance (SCP) Model. The paper concludes that in order to obtain higher profitability in the Indian Manufacturing Industry, firms must either lower their cost of production and/or government regulation must decrease.