Foreign investment in Indian automotive industry declines 85% during April–May

Largely to recent poor sales scenario causing automakers to stall on investments.

Foreign direct investment (FDI) in India's automotive industry declined sharply during the first two months of the current fiscal year, said a report in the Economic Times. Citing data released by the Department of Industrial Policy and Promotion (DIPP), the report said the industry received USD73 million in FDI during the period, down 85% year on year (y/y) from USD478 million in the same period last year. The decline is stark when compared to India's total FDI, which increased to USD24.29 billion during the fiscal year 2013/14. The country attracted foreign investments of INR22.42 billion in the previous fiscal. The DIPP, under the commerce and industry ministry, deals with FDI-related matters.