Tesla Chief Elon Musk is scheduled to arrive in India on Sunday and will meet Indian Prime Minister Narendra Modi on Monday. Musk is then expected to attend an event organized by the Government of India with space startups in New Delhi, at present many countries are ready to invest in India, then how will Elon Musk be left behind. Anyway, in an interview to a news channel, Ma Narendra Modi had said that the labor should be ours only for that company.
That is to say , the arrival of Elon Musk will have a different impact on Indian EV car production (though in short, some points are important here).
Import tax reduction
India has higher taxes on imports due to its policy of promoting local industries. This is called import substitution industrialization (ISI). Higher import duties are the result of this policy, which is also necessary in developing countries like India. It is also important to protect industries from international trade.
For years, Elon Musk opposed India’s high import tariffs for EVs and tried to change that. India’s government unveiled a new EV policy in March that reduced import taxes on some models from 100% to 15% if a carmaker invests at least $500 million and starts a car ing project. Now the result is that Elon Musk is attracted to Indian investment.
EV market in India
By the way, India is still in its infancy in terms of electric cars. India still does not have the response as much as it should in terms of electric cars. And Tata Motors dominates the electric car sector. EVs accounted for only 2% of total car sales in 2023, but the government has set a target of making 30% of new car EVs by 2030.
Along with electric cars, there could also be a roadmap for investment in the case of manufacturers of the supplements it needs. Investment in the battery manufacturing sector can also be a part of the investment,
Employment opportunities
Elon Musk will come to India to bring new investment projects that will also provide new employment opportunities to the youth of India. Tesla owners can disclose the amount of their investment in India, but it is not yet known how long the investment will take place and in which state of the country .
Impact of EV on the environment
The impact of EV cars on the environment is generally seen as positive compared to conventional gasoline-powered vehicles. Electric vehicles emit zero tailpipe emissions, which reduces air pollution and greenhouse gas emissions However, the production of electric vehicles with batteries can have environmental effects such as increasing resources and energy consumption.
