After govt clarification, Tesla might come to India sooner

The Indian government said today that Tesla, a specialist in electric cars based in the US, will not have to provide local components if it intends to establish a manufacturing unit in the country.

The government responded to concerns expressed by Tesla founder Elon Musk that the company must generate a certain percentage of local components to establish a plant in India. Musk on your tweet said, “Maybe I’m misinformed, but I was told that 30% of the pieces should be provided locally and that supply does not yet exist in India to support that.” The Ministry of Trade and Industry in India to finalise the Twitter as a program said that foreign direct investment policy (FDI) does not provide for a minimum supply of components by manufacturers. Under this policy, after manufacturing in India, a foreign investor is allowed to sell their products in any form – wholesale, retail or e-commerce.

“FDI policy also allows wholesale of goods imported into India without supply conditions,” the ministry said.

Only for the retail sector that supply conditions are required. These standards do not apply to manufacturers because the products are produced in India, he added.

Last year in April, the company had said it expected to enter India with its 3 model in 2017.

During a visit to the company’s plant last year, the Minister of Road, Transport and Highways Nitin Gadkari had the Tesla land offered near major Indian ports to facilitate exports to South and South-East Asia countries while Prompts the company to make India its manufacturing operations hub in Asia.

In September 2015, Prime Minister Narendra Modi visited the Tesla plant in San Jose and showed great interest in some of his innovative inventions, especially in the renewable energy sector that can have multiple applications in remote rural areas.

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