Tesla’s CEO, Elon Musk, has confirmed his upcoming visit to India this month, expressing his anticipation to meet Prime Minister Narendra Modi. Musk had previously met Modi during the latter’s US visit in June last year, where he discussed his plans to visit India in 2024. Modi had invited the tech billionaire to explore opportunities in the country for investments in the e-mobility sector. Musk’s visit follows the Indian government’s recent announcement of a new electric vehicle policy that offers import duty concessions to companies investing a minimum of USD 500 million in setting up manufacturing units in the country.
Tesla had approached the Indian government last year seeking duty cuts for importing its vehicles. In 2022, Musk declared that Tesla would not commence manufacturing in India unless permitted to sell and service its cars in the country. The entry of Tesla in India, as the company scouts for factory land, will be a natural progression, Musk has said, as the country gears up for mobility transformation. Industry experts have emphasised that the rise in EV battery manufacturing, alongside the ‘Make in India’ initiative, will lower manufacturing costs and boost EV sales in the country.
In a ‘Spaces’ meeting on his X social media platform with Nicolai Tangen who is CEO of Norges Bank Investment Management, the billionaire said that “it’s a natural progression to provide Tesla electric vehicles in India.” India, like other nations which have adopted EVs, should also have more and more electric cars going forward, according to the X owner. The electric car company is reportedly sending a team of experts to search for a location to set up a $2-$3 billion EV plant in India. Gujarat, Maharashtra and Tamil Nadu are reportedly on top of the company’s agenda to start EV manufacturing and export those as well.
Another question that is being asked is will Musk announce the arrival of Starlink in India? Starlink, an affordable satellite-based internet service offered by Elon Musk-run aerospace company SpaceX, has transformed the way people access the web in remote and inaccessible parts of the world. After several failed attempts, Starlink is geared up to launch satellite broadband services in India, which has close to 92 crore broadband subscribers, according to the latest data by the Telecom Regulatory Authority of India (TRAI). Reliance Jio Infocomm and Bharti Airtel currently lead the broadband market, followed by Vodafone Idea and BSNL.
The government in December last year passed The Telecommunications Bill 2023 which allows spectrum allocation for satellite-based services without the need to participate in auctions. The move favours companies such as OneWeb, Musk’s Starlink and Amazon’s Kuiper. India’s digital economy is experiencing a period of significant growth momentum. Increased digital access would empower citizens in ‘aspirational India’, fostering a wave of entrepreneurship, enhanced access to education and healthcare, and increased participation in the digital workforce.
