Globalisation, Crisis and Industrial Relations in the Indian Auto Industry

This paper examines how the pattern of investment in the Indian auto industry has changed. The author argues that the industrial relations climate has been an important determinant of that pattern. Industrial relations climate is politically and institutionally determined hence any shift in the broader capital-labour relation in the wider global economy due to globalisation is argued to be tempered by India's particular national and local institutions governing industrial relations, unionisation, the specific trajectory of the Indian auto industry, and economic development strategies. When much of the global industry is reeling under the financial crisis, India's industry has been expanding. However, the power of workers has been declining in conflict-ridden states just as globalisation and deregulation have hastened capital flight to more pro-business regions. The paper draws some policy implications for employment security and lessons for other countries in these turbulent times.