Manufacturing in China and selling in India is not digestible concept: Gadkari

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Manufacturing in China and selling in India is not digestible concept: Gadkari
14 Feb 2022
7 min read

News Synopsis

Union Minister for Road Transport and Highways Nitin Gadkari has said that manufacturing Tesla in China and selling in India is not a digestible concept for India, as The CEO of Tesla, Elon Musk continues to seek tax rebates to sell the cars in India. The minister also said that he met the head of the Indian arm of Tesla. Nitin Gadkari also said that the country cannot cut custom duties for one automobile company. Tesla's CEO has been trying to get the government of India to cut customs duties for the company to sell its cars in the country. He recently tweeted that he faced challenges from the government to release its products in India. Tesla has registered its Bangalore office as Tesla India Motors and Energy Private Limited and has appointed three directors. The company is registered with an authorised capital of Rs 15 lakh and paid-in capital of Rs 1 lakh. Earlier this week, the government questioned Tesla's business practice of not wanting to set up a manufacturing facility in the country that could create thousands of jobs. According to the Ministry of Heavy Industries, the government of India has formulated a scheme, called FAME India in 2015 to promote the adoption of electronic or hybrid vehicles in India with an aim to reduce dependency on fossil fuels.

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