Tesla India: No need to source local components while setting up ops in India, Centre to Elon Musk
The government on Tuesday clarified that US-based electric car major Tesla will not have to source local components if it plans to set up a manufacturing unit in India.
The government responded to apprehensions expressed by Tesla founder Elon Musk that the company would have to source a certain percentage of local components to set up plant here.
The commerce and industry ministry through its ‘Make in India’ Twitter handle stated that the foreign direct investment (FDI) policy does not mandate any such minimum sourcing of components by manufacturers.
.@elonmusk With respect to news reports on launch plans of Tesla in India being delayed, please note some key clarifications#MakeInIndia pic.twitter.com/9RFICGM9Kk
— Make in India (@makeinindia) May 23, 2017
As per the policy, after manufacturing in India, a foreign investor is permitted to sell its products in any manner – wholesale, retail or e-commerce.
“FDI policy also permits wholesale of imported goods in India without sourcing conditions,” the ministry said.
It is only for retail trading of goods that sourcing conditions are mandated. Such norms are not applicable to manufacturers as goods are produced in India, it added Musk in his tweet has said: “Maybe I’m misinformed, …read more
