FDI equity inflow amount for automobile industry in India FY 2015-2024

In fiscal year 2024, the automobile sector in India saw an equity inflow from foreign direct investments worth approximately 1.5 billion U.S. dollars. The automobile sector in the country had equity inflows that consistently ranged between two and three billion dollars between 2015 and 2021. However, 2022 was the year with the highest FDI inflows in the sector. 

The Indian automobile industry 

The Indian automobile industry, valued at 118 billion U.S. dollars, was the global leader in manufacturing tractors and two-wheeler and three-wheeler vehicles. In addition, in fiscal year 2019, India was one of the leading producers of passenger cars in the Asia Pacific region while in fiscal year 2017, the automobile sector in India saw a turnover of over 67 billion U.S. dollars.  

Contribution to India’s development 

In fiscal year 2021, the total FDI equity inflow to India amounted to approximately 60 billion U.S. dollars. FDI inflows play a key role in shaping the Indian economy. A higher FDI inflow value is positively correlated with higher generation of employment and consequently, facilitates in improving competition within the industry while reducing costs and increasing productivity.  

The Indian automobile sector’s contribution to India’s GDP was over seven percent. What is more, it created  employment  for approximately 19 million people.