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The contribution of the automotive industry to GDP has risen from 2.77% in 1992- 93 to 5% in 2005-06. The auto companies have a manufacturing capacity of over 95 vehicles per annum. Foreign investors have found this stable economy very favorable for their investments into the country. India’s GDP real growth rate is 9.2% (2006 EST.). The country's advantage in affordable and quality cars has let the economy to increase their international sales which stimulated the economy to boost up again in recent years. We analyze from the data that the FDI inflow is much higher in to India rather than the out flow...
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