Fdi in Automobile

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  • Topic: Automotive industry by country, Maruti Suzuki, Automobile industry in India
  • Pages : 3 (836 words )
  • Download(s) : 29
  • Published : May 1, 2013
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Foreign direct investment (FDI) is a direct investment into production or bus iness in a country by a company in another country, either by buying a company in the target country or by expanding operations of an existing business in that country. Foreign direct investment is in contrast to portfolio investment which is a passive investment in the securities of another country such as stocks and bonds. Foreign direct investment has many forms. Broadly, foreign direct investment includes "mergers and acquisitions, building new facilities, reinvesting profits earned from overseas operations and intracompany loans".[1] In a narrow sense, foreign direct investment refers just to building new facilities.  FDI Inflows to Automobile Industry have been at an increasing rate as India has witnessed a major economic liberalization over the years in terms of various industries. The automobile sector in India is growing by 18 percent per year. 

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The Automobile Sector in India-

The automobile sector in the Indian industry is one of the high performing sectors of the Indian economy. This has contributed largely in making India a prime destination for many international players in the automobile industry who wish to set up their businesses in India. 

The automobile industry in India is growing by 18 percent per year. The automobile sector in India was opened up to foreign investments in the year 1991. 100% Foreign Direct Investment (FDI) is allowed in the automobile industry in India. The production level of the automobile sector has increased from 2 million in 1991 to 9.7 million in 2006 after the participation of global players in the sector. 

FDI IN AUTOMOBILE 
• The automobile industry in India is growing by 18 percent per year. The automobile sector in India was opened up to foreign investments in the year 1991.  • 100% Foreign Direct Investment (FDI) is allowed in the automobile industry in India.  • The...
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