New Delhi: Prime Minister Narendra Modi emphasized the importance of foreign investment aligning with India’s cultural ethos and engaging its citizens in the manufacturing process. In an interview with ANI leading up to the Lok Sabha elections, PM Modi welcomed global investments but insisted that whoever wishes to invest in India can do so, but it must be produced by Indians so that youth can get employment opportunities.
Answering a question on Elon Musk’s Tesla and Starlink’s possible entry into India PM Modi said, “I want investment to come in India because in India, it doesn’t matter who has invested money, (but) the sweat put into the work must be of our own people. The product should have the essence of our soil, so that our youth in the country will get employment opportunities.”
PM Modi also recalled about his visit to Musk’s factory back in 2015. The Prime Minister said Musk cancelled his pre-scheduled commitment and met him.
“He showed me everything in his factory. And I understood his vision from him. I went there just now (to the US in 2023) and met him again. And now he is about to come to India,” PM Modi said.
Elon Musk is set to meet PM Narendra Modi in India later this month, as per a post on X by the Tesla chief. It is widely expected Musk may unveil big-ticket investment plan in India. However, the final agenda for Musk’s trip to India is yet to be confirmed.
PM Modi further said that India has committed to the world that the country is moving very fast on electric vehicle domain and companies must come and invest here. Outlining the growth in India’s EV sector, PM Modi gave a gist how sales in electric vehicles rose from just 2,000 in 2014-15 to 12 lakh in 2023-24.
“Not 2,000 units, but 12 lakhs units were sold in 2023-24. This means a network of such a big charging station has been created. It has helped the environment and we have made policies regarding this,” the Prime Minister said.
This surge in EV sales can be attributed to factors like, government incentive schemes like PLIs, infrastructure development including EV charging points, increasing consumer interest, and government push to meet green target.
Making a strong case in connection to his government’s flagship ‘Make in India’ initiative, he said he does not agree that India’s wheat should be exported and later buying the end-product bread from abroad for its consumption.
“We want people to invest in capital. We want the youth of our country to get employment. I do not agree with this that my country’s wheat should be exported and we should buy bread from abroad. I will not do that. Whatever I do, I will do it in my country. I will do it for the benefit of my country. And I also make policies for this. I make it with courage. And people are trusting me,” he explained.
The Tesla Chief’s visit to India seemed to have been fast-tracked in the wake of India’s new EV policy, where various incentives are proposed for setting up manufacturing units in India. The new EV policy has asked for a minimum investment threshold of Rs 4150 crore (USD 500 million) and encouraging manufacturers to achieve significant levels of domestic value addition (DVA), the government mandates that by the third year of setting up the manufacturing unit, at least 25 per cent of the parts used to make the vehicles should be sourced domestically.
Under the new EV policy, for vehicles valued at USD 35,000 or more, a 15 per cent customs duty will be imposed for five years if the manufacturer builds manufacturing facilities in India within three years. The total number of EVs allowed for import under the policy will be limited based on the investment made, or of a maximum value of Rs 6484 crore, whichever is lower. If the investment exceeds USD 800 million, a maximum of 40,000 EVs can be imported, with no more than 8,000 per year. Unused import limits can be carried over.
It was reported that Tesla has intensified its efforts to bolster its presence in the Indian market and is actively scouting for a suitable location to set up a state-of-the-art manufacturing plant. The governments of Maharashtra and Gujarat have extended lucrative land offers to Tesla for the establishment of an electric vehicle (EV) manufacturing plant, signaling a major stride in India’s electric mobility landscape.
