Analyzing the Impact of FDI in the Automobile sector: An Empirical Study with Special Reference to India

Abstract: Indian automobile industry has grown rapidly and become a major contributor to the country's economy. It produces a wide range of vehicles like cars, motorcycles, commercial vehicles, and tractors for both Indian and international markets. The industry has attracted investments and boosted related industries like component manufacturing. The Indian government has implemented favourable policies to support the sector, including initiatives for electric vehicles. In this paper growth and progress of the Indian automobile industry are studied using secondary data for the period of 2011-12 to 2021-2022. The study found that, FDI inflows and its share in total FDI both significantly increased in the years 2021–2022. Consistent FDI inflows into the automobile industry promote related to technology advancement, the creation of employment opportunities, and the growth of India's automotive sector as a whole.