Financial Performance of Indian  Automobile Industry  A Comparative Study During Pre and  Post Foreign Direct Investment

A.Dharmaraj; Dr.N.Kathirvel

Volume : II, Issue : IX, September - 2013

Financial Performance of Indian Automobile Industry A Comparative Study During Pre and Post Foreign Direct Investment

A. Dharmaraj, Dr. N. Kathirvel

Abstract :

The Indian Automobile Industry marked a new journey in the 1991 with the financial revolutionary New Industrial Policy Act 1991 opening automatic route which allowed the 100 per cent Foreign Direct Investment(FDI). Here, an attempt is made to find out the effect of FDI on the financial performance of Indian Automobile Industry. For this purpose, sixteen companies were selected and analysed through various financial ratios. Descriptive statistical tools like Mean, Standard Deviation and Student�s paired �t� Test were used to test the hypothesis. The liquidity analysis showed little changes and profitability analyses showed an increasing trend during post FDI when compared to pre FDI. The efficiency analysis showed that the companies are efficiently utilising the available resources during post FDI as compared to pre FDI. It is concluded that foreign direct investment in India makes positive impact on the financial variables of the Automobile Companies.