Tesla Ready To Invest $2 Billion To Set Up Factory In India

Tesla has proposed to invest $2 billion in India and will also purchase auto parts worth $15 billion from India. Tesla has committed to localizing 20% of its made-in-India cars within two years and increasing it to 40% within four years. These proposals are still awaiting final approval from the Indian government.

The Indian government is supporting Tesla’s plan to invest in India. But both sides have not come to a final agreement. One of the key points is Tesla’s request for a concessional import duty of 15% on its vehicles for two years. Till now, the Indian government has not agreed to this approval, but an announcement on Tesla’s investment is expected at the vibrant Gujarat global summit scheduled for January 2024.

Tesla has considered these three states for its investment plan: Maharashtra, Gujarat, and Tamil Nadu. These states are best for exporting because all three states are near the sea.

If Tesla comes to India, then it will be best for both India and the Tesla company because India is a fast-growing economy, the Tesla company will get a good boost, and in India, jobs will also increase. The Indian electric sector will also see good growth, and technology will also compete further and transfer things.

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