A Study on Influence on Foreign Direct Investment with Special Reference to India’s Automobile Industry

Abstract

The inflows of foreign direct investment (FDI) to Automobile Industry have been at an increasing rateas India has witnessed a major economic liberalization over the last few years in terms of various industries The automobile sector in India is growing by 18 percent per year. The basic advantages provided by India in the automobile sector include, advanced technology, cost-effectiveness, and efficient manpower. Besides, India has a well-developed and competent Auto Ancillary Industry along with automobile testing and R & D Centers. The automobile sector in India ranks third in manufacturing three wheelers and second in manufacturing of two wheelers. The major investingcountr iesareMauritius (mainly routed from developed countries), USA, Japan, UK, Germany, the Netherlands and South Korea1. India needs to concern regarding the foreign direct investment (FDI) front. Future prospect of Indian Automotive Sector is looking bright. Indigenous automobile companies are replacing for eignmultinational companies interms of consumers at isfaction. Since 2002, automotive sector hasmuchto deliver in the years to come. Direct Investment In flows in India-Opportunities and Benefits, Important Aspects of FDI in Automobile Industry, Recent FDI Trends in India, The major foreign players whohaveasi gnificantroleint hedevelopment of Indian automobile industry, were discussed and the passenger car segment growth, Production, Sales and Investment were analyzed. Here therese archersusing thre estatistical tool foran alyzing th estudy, ARIMA, Linear & Compound Model for analysis purpose to measure futu reprediction using time series analysis.