The Indian auto industry is one of the largest in the world with an annual production of 23.37 million vehicles in FY 2014-15, following a growth of 8.68 per cent over the last year. The automobile industry accounts for 7.1 per cent of the country's gross domestic product (GDP). Moreover, the growing interest of the companies in exploring the rural markets further aided the growth of the sector. Several initiatives by the Government of India and the major automobile players in the Indian market are expected to make India a leader in the world by 2020. The industry produced a total of 23,366,246 vehicles including passenger vehicles, commercial vehicles, three wheelers and two wheelers in April-March 2015 as against 21,500,165 in April-March 2014, registering a growth of 8.68 percent over the same period last year. Indian automobile industry is trying to make a breakthrough in improving the efficiency, durability and cost of vehicles using nanotechnology solutions along with decreasing the pollution by using hydrogen fuel or electric engines. In this paper, we have discussed the effect of nanotechnology innovations on Indian automobile sector in order to solve the problems in automobile efficiency, durability, cost, and environmental pollution. The paper also contains the discussion on the impact of these innovations on economical, political and renewable energy sector of the country.
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