The growth of the automotive and transportation industry is one of the key factors influencing the development of a country’s economy and India is no exception to this rule. However, while transportation facilities have grown at a rapid pace since the country’s economic liberalisation in the 1990’s, outdated infrastructure, lack of proper investment and inefficient management continue to remain major obstacles in the development of the country’s transport network, with the result that it is unable to fulfill the needs of the ever-growing population. The Indian automobile industry has especially grown in leaps and bounds, helped by the entry of several global automotive players, who regard the country as a cheap manufacturing hub. India’s public transport system continues to be one of the most important forms of transport for the country’s population, apart from the Indian railway network. The Indian automotive industry can be broadly classified under three categories: passenger vehicles, commercial vehicles and two wheelers. The development of all these categories is closely related to the fluctuations in the Indian economy, with factors such as the price of petrol and diesel, interest rates for auto loans and individual income rates playing a major role influencing their growth. While the entry of global players remains a welcoming influence, there needs to be a major revision of government policies to facilitate such forms of foreign direct investment (FDI) even further. Hide this