The Indian economy is slowly moving towards profitability, thanks in part to the revival of automotive production.
The economy is also expected to grow by 8 per cent this year, from 7.8 per cent in the previous year.
The country’s biggest manufacturing firms, including Tata Motors, Reliance Industries, Hindustan Aeronautics Ltd, Hinducopia Industries and Mahindra & Mahindran, have been investing heavily in production of their cars, especially in the state of Tamil Nadu.
The revival has helped to bring the Indian economy back on the track.
The government has taken the decision to revive the auto industry and it’s looking to attract a bigger chunk of investment by the country’s manufacturers.
The Indian Auto Manufacturers Association, an industry group, estimates that manufacturing companies invested $11 billion (Rs.
8,871 crore) in the past five years.
The government has set a target of boosting investment to a total of $25 billion by 2021.
The auto industry has been a source of pride for India for centuries.
In fact, it has been the first Indian company to make its name in the global automotive industry.
But despite the countrys growth, the automobile industry is still facing the challenges that come with the rise of smartphones and other electronic devices.
It also faces competition from cheaper, mass-market cars from the US, Europe and China.