2. Automotive

The automotive industry in India is one of the largest in the world and one of the fastest growing globally. Indian automotive industry is the sixth largest vehicle manufacturing industry in the world. Since 1991 almost all global majors have set up their facilities in Indian taking the level of production from 2 million in 1991 to over 10 million in recent years. The exports in automotive sector have grown on an average compound annual growth rate of 30 percent per year for the last seven years.

Since 2011, this sector has attracted 78 FDI deals which is a rise by 28 percent as of 2010. Automotive contributes 8 percent to the entire FDI projects and 16 percent of the total jobs created by FDI deals.

3. Retail and Consumer Products

The number FDI deals in the consumer products sector grew by 31 percent in 2011. This particular sector contributes 10 percent to the entire FDI projects and has created nearly 28,400 jobs. The government's decision to attract FDI into various sectors - especially in multi-brand retail - is a very positive move. While it will be several quarters before things on the ground change, the series of moves announced last week are very important to boost investor confidence, create the notion that the country is open for business again and possibly avert a ratings downgrade," says Sajjid Chinoy, India Economist, JP Morgan, as quoted by Rediff.

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