By Jeff Glekin
MUMBAI, Jan 31 (Reuters Breakingviews) - So far, India's economic growth has looked more to services than manufacturing. But balance is needed and carmakers may provide a blueprint. With low barriers to foreign capital, India is set to become the third largest car maker in the world and could become a major exporter.
Full view will be published shortly.
-- Overseas investment in India rose for the first time in three years in 2011, Ernst & Young reported on Jan. 29.
-- Foreign direct investment rose 13 percent to $50.81 billion in the first 11 months of 2011 from a year earlier, according to the EY report. The total number of projects rose 25 percent to 864. Automakers led the way, increasing spending by 46 percent.
-- India is set to become the third largest automotive maker in the world by 2015 according to a report by Rothschild, the investment bank, in Dec. 2011.
--plans to invest $142 million in its 200,000 vehicles-a-year plant in Chennai the company announced this month.
(The author is a Reuters Breakingviews columnist. The opinions expressed are his own)
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(Editing by John Foley and David Evans)