FDI equity inflow amount for automobile industry in India FY 2015-2025

In fiscal year 2025, the automobile sector in India saw an equity inflow from foreign direct investments worth approximately *** billion U.S. dollars. The automobile sector in the country had equity inflows that consistently ranged between *** and ***** 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 *** 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 ** billion U.S. dollars.  

Contribution to India’s development 

In fiscal year 2021, the total FDI equity inflow to India amounted to approximately ** 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 ***** percent. What is more, it created  employment  for approximately ** million people.