IJFANS International Journal of Food and Nutritional Sciences

ISSN PRINT 2319 1775 Online 2320-7876

The Role of Foreign Direct Investment in Automobile Industry’s Expansion in India: A Study with reference to period for 2011~2020

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Avdhesh Kumar,Dr. Devesh Kumar

Abstract

Even though India's automobile sector is amongst the world's biggest, it only contributes 7.1 percent of the country's GDP. It also accounts for 22 percent of the country's GDP in manufacturing. When India's economy was liberalized in 1991, the industry was initially exposed to “Foreign Direct Investment (FDI)”. It has since gone a long way. The amount of FDI going into the automobile industry has been steadily rising. Various industries in India have seen significant economic liberalization in the recent few years. India's vehicle industry is expanding at an annual value of 18 percent. The primary advantages of India in the car business include modern technology, cost-effectiveness, and a highly skilled workforce. India also boasted a well and qualified Automotive Industry, along with vehicle testing and Research And development centers. For three-wheeled vehicles, India is ranked third, while for two-wheelers, it is ranked second. Mauritius, Singapore, United States, Netherlands, Japan, United Kingdom, Germany, and South Korea are the primary investors. It makes a significant variational effect on the economy because of its extensive backward and forward connections with various vital sectors of industry. A vast range of vehicles, including passenger vehicles, compact, moderate, and large transport vehicles, multi-utility automobiles, scooters and motorcycles, mopeds, and three-wheelers, are produced by the Indian automotive industry. The ten-year study period from 2010-11 to 2019-20 regarding production, regional and global shipments, and the industry's development potential in 2020-21 A.D. was investigated in this analytical research design. The impact of “Foreign Direct Investment (FDI)” stock inflows on vehicle manufacturing.

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