Sr. Lecturer, Garden City College, Bangalore, India
Online published on 28 February, 2013.
Foreign Direct Investment, or FDI, is a type of investment that involves the flow of foreign funds into an enterprise that operates in a different country of origin from the investor. Foreign Direct Investment benefits the host and the home country. FDI is an important factor in the globalization process as it increases the interaction between countries and Industries.
Automobile Industry in India has a very old history and is an industry that is growing very fast and it is righty called as the ‘Sunrise sector’ of Indian economy. The cumulative FDI in the automobile industry from April 2000 to January 2012 is US $243,055 million. The automobile industry in India is growing by 18 percent per year and is expected to provide employment for 35 million people by 2022. In this paper, we study the impact of inward FDI in the automobile industry.
In this paper, we try to understand the FDI inflow in the Indian automobile sector and the various segments of the automobile sector and the trend of FDI inflow in the Indian automobile sector. We try to analyze the challenges and the opportunities for FDI inflow in the Indian automobile sector.
