New Delhi, Dec 28 (IANS): The Central government expects the Indian automobile sector to attract around $8-10 billion in local and foreign investment by 2023.

According to the "Year End Review 2018" of the Ministry of Heavy Industries & Public Enterprises issued on Thursday, the sector has attracted $16.5 billion in foreign direct investment (FDI) between April 2000 and December 2016.

"The growth of the automotive industry in India since the early 1990s is a shining example of how industrial prowess supported by progressive policies and national economic growth can yield rewards to all stakeholders," the review statement said.

"The advantage of experience, scale and expertise of Indian automotive companies along with the stimulus of high domestic demand provides the domestic industry with a unique opportunity to achieve global leadership in both manufacturing and engineering, especially in emerging areas."

The Automotive Mission Plan 2016-26 (AMP 2026) envisions that by the year 2026, India will be the third in the world after China and the USA in engineering, manufacturing and export of vehicles and auto components.

As per the review statement, the sector contributes 7.1 per cent to the total GDP and provides employment to about 32 million people, directly and indirectly.

India is also the largest manufacturer of two-wheelers, three-wheelers and tractors in the world, and overall, the fifth largest vehicle manufacturer, according to a Society of Indian Automobile Manufacturers (SIAM) data.