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Role of Foreign Direct Investment - FDI - in the growth of Automobile Industry in India

Author Affiliations

  • 1 CIRD, Bangalore, Karnataka, INDIA
  • 2 Dept. of Commerce, P. G. Courses and Research Centre D.N.R College (Bhimavaram), Andhra University, AP, INDIA

Res. J. Management Sci., Volume 2, Issue (1), Pages 13-20, January,6 (2013)


FDI has an important contribution in the growth of a developing country. It is essentially through an investment in equity or starting a subsidiary company, technology transfer with managerial skills and applying improved management methods leading to cost reduction and may lead to increase in productivity. In mid 80’s world over few countries allowed inward FDI for economic development and in 1991 India needed foreign investments to accelerate economic growth. This can also trigger in other areas in the developing economy like India. Automobile Industry is one of the key roles played in GDP factor of Indian economy. This paper will give details on the FDI and in-relation to the development of production and export of Automobiles in India for the last decade – 2001 - 02 to 2011 - 12. Automotive Mission Plan 2006-16 and vision 2020.


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  6. Data from SIAM India website [Society for Indian Automobile Manufacturers ] (2011, 2012)
  7. (2012)
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