Piyush Goyal, Commerce and Industry Minister, said on March 10 that India would not tailor its policies to suit US EV maker Tesla.
In an interview with PTI, Piyush Goyal mentioned that India’s laws and tariff rules will be formulated to attract all-electric vehicle manufacturers from across the world to set up up shop in India. He further mentioned that India will not tailor policies to suit any one company in the world’s fastest-growing economy.
“Everybody is free to make their demands. But that does not mean that the government will necessarily take a decision (based on) what you demand,” he said, as reported by the news agency.
Piyush Goyal noted that greater use of battery-run vehicles will reduce carbon emissions, and the government recognises the need for a vibrant EV ecosystem. This ecosystem will also ensure the reduction of extremely high oil import bills and save foreign exchange, reported PTI.
The Commerce Minister claimed that the country is working on several initiatives where the ministry is conducting inter-ministerial (consultations) and a dialogue with the stakeholders, with potential investors from across the world from Europe, the United States, the Far East, Japan, Korea and more.
“Government does not tailor policy for any one individual company or its interests,” PTI quoted the Commerce Minister as saying while answering a question about whether the government is considering giving Tesla any concessions for setting up a manufacturing facility in India. If Tesla were to successfully establish a factory in India, it would be its sixth manufacturing plant.
While recognising that India should have a vibrant electric mobility ecosystem to fight against the climate change crisis and improve pollution levels, Piyush Goyal mentioned that electric mobility will add to our economic output. He said multifarious benefits will follow, including saving foreign exchange, reducing trade deficits, and lowering inflation, which will, in turn, help reduce interest rates.
The Commerce Minister pointed out that the electric vehicle sector can serve as a powerful medium to make India macro-economically stronger.
Elon Musk’s Tesla wishes to offset 70 per cent customs duty for cars worth less than USD 40,000 and 100 per cent for higher-value cars. Thus, the EV maker has been seeking tariff concessions as a precondition for building a plant in India. Meanwhile, India imposes high tariffs on motor vehicles to boost local production.
