Indian Automobile Greenfield Projects and its Impact on Economic Sustainability

Sustainability in general means meeting the needs of the present without compromising the ability of future generations to meet their needs. Sustainability has 3 major dimensions-environment, economic and social. Each dimension is governed by many factors. Economic sustainability can be analyzed by using different methods and also using different economic indicators. There is an increasing value of Greenfield investment (Domestic Investment and Foreign Direct Investment (FDI)) projects in the developing economies and transition economies. These nations seem to absorb a major portion of the global FDI. There have been theories stating that FDI can have a positive impact on growth through transfer of capital, technology, innovations, management knowledge. There has been growth in the manufacturing sector in many countries because of FDI and manufacturing sector in turn contributing to economic growth.

This paper focuses on the Greenfield projects in India and in particular, the automobile segment. The paper discusses the Indian Greenfield automotive project's impact on economic sustainability.