India features a large auto industry. The country ranks 4th in Asia and 9th within the world because the world's largest industry in India. India has an annual production of about 2.3 million units.

India is currently the most important manufacturer of tractors within the world, the second largest two-wheeler within the world and therefore the fifth largest manufacturer of economic vehicles.

The automobile industry in India grew rapidly after liberalization in 1991. The industry continued to grow and have become increasingly skilled within the global market. within the past, India has experienced a boom within the industry thanks to wide restrictions on investment policies within the industry. India's overall economic process has also played a crucial role in attracting foreign investors to India to take a position within the country's auto sector.

The Automobile industry in India has made great strides in adopting new technologies and adaptability as business scenarios change.

India's central and state governments have taken several measures to draw in investment during this sector and further accelerate industrial growth. the govt has liberalized the standards for foreign investment during this sector. Currently, the govt allows 100% of foreign direct investment during this sector.

The government has also introduced several policies and incentives to encourage investment within the Indian auto sector. the foremost important policy is that the car policy, which was established in 2000. This policy is primarily aimed toward building a globally competitive auto industry in India and contributing to the Indian economy.

The main objectives of the car policy are as follows:

Make India a worldwide source of auto parts

2. Support the event of vehicles which will be powered by energy sources

Develop national safety practices in line with international standards

4. Orient India's software industry towards automotive engineering
5. Make India a world Hub for Affordable Small Car Manufacturing
6. Become a worldwide pusat production center on two wheels
7. Ensure a balanced transition to open trades with minimal risk

Thus, this ambitious Indian auto policy aims not only to grow India during this sector, but also to draw in huge investment to the country.

The Ministry of Heavy Industry, under the Ministry of Heavy Industry and General Enterprises, is that the main body liable for increasing the expansion and development of the automobile industry in India.

The division supports industry growth through policy initiatives and provides vehicle manufacturers with facilities for technology collaboration, modernization and R&D.

India's growing bourgeoisie and rising purchasing power, aided by strong macroeconomic fundamentals, have also helped major automakers flock to India. Several global players, including major automakers Suzuki and Honda, have invested heavily in India and have successfully entered the Indian market.

All these factors and government initiatives demonstrate that the Indian auto industry has emerged as a replacement sector with unlimited growth potential and a promising return on investment. The automotive sector not only meets the requirements of the domestic market, but also penetrates deeply into the international market.