India is the fastest growing economy in the entire world. In such a situation, every country is considering it as a global economic trigger and is planning to invest here. Soon after Apple’s entry in the Indian market, Elon Musk (Elon Musk)’s company Tesla is also coming. According to the ET report, the PMO has ordered the government departments to complete the work of giving all the necessary approvals by January. It is being told that on Monday, the PMO held a meeting with top officials to take stock of the work on the next phase of EV manufacturing in the country and to get information about Tesla’s investment proposal. Along with discussing policy matters in the meeting, it was also said that Tesla’s investment should be approved expeditiously by January 2024. Let us tell you that in June this year, Prime Minister of India Narendra Modi (Narendra Modi) had traveled to America. During this time he met Tesla CEO Elon Musk. Since then, the Commerce and Industry, Heavy Industry and Electronics and IT ministries are in talks with electric car makers between Tesla and India.
Why is the deal important till January?
It is considered very important for both India and Tesla to get this deal done by January. On one hand, this deal will make India’s economy grow very fast. At the same time, American President Joe Biden will be the chief guest on the occasion of Republic Day in January. In such a situation, India is trying its best to close this deal by January. Meanwhile, Tesla officials have started talks with the Indian government to set up a car and battery manufacturing unit. The EV maker has also talked about creating its own supply check ecosystem in India. The PMO has ordered government departments to resolve any differences with the company regarding investment. Regarding its investment, Tesla had demanded from the Indian government to impose 40 percent import duty on fully assembled electric cars. Currently, vehicles coming from abroad priced below $40,000 attract 60 percent import duty. Whereas, 100 percent import duty is collected on vehicles costing more than this.
Government should consider EV as not a luxury car: Tesla
The Indian government currently does not differentiate between electric cars and hydrocarbon-powered cars. Also, high charges are levied to promote local manufacturing. In this regard, Tesla says that the Indian government should consider its cars not as luxury cars but as EVs. This is the biggest hurdle in the deal between India and Tesla. Along with this, Tesla wants to sell some cars in the country before starting to manufacture its cars in India. This will give him an idea of the Indian market. However, it is now believed that the government may make some changes in its electric vehicle policy to bring Tesla to India. The government is also considering the creation of a new category in its policy. Officials associated with the matter say that if the government changes the policy or creates a new category, then not only Tesla but other global companies will also benefit from it. Along with this, business will become easier for other companies in India.
China’s troubles will increase
The two American companies Apple and Tesla have a major contribution in China’s overall economy in boosting the economy and creating employment. Recently, due to US-China relations and Covid policy, Apple turned to India. Now, Tesla is also looking for manufacturing opportunities in India. Its impact is directly on China’s economy. Tesla wants to work on expanding its business in Asia and South Asian markets by setting up its manufacturing unit in India. However, after setting up the manufacturing unit in India, no information has been given by the company about how much of its business Tesla will get from China.