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Policy change for foreign EV cos hinges on US trade deal
Mint Mumbai
|April 25, 2025
This comes at a time when negotiations on a bilateral trade agreement are in full swing
India is open to revising its EV (electric vehicle) manufacturing policy for foreign automakers once tariffs on zero-emission cars are determined in the India-US bilateral trade agreement, a top government official said on Thursday. This could potentially encourage US-based EV maker Tesla to set up a manufacturing plant in India. The development followed a conversation between Prime Minister Narendra Modi and Tesla founder Elon Musk about topics of mutual interest and technological collaboration between India and the US on 18 April.
India's policy on attracting foreign direct investment (FDI) to manufacture electric cars is led by the Scheme to Promote Manufacturing of Electric Passenger Cars in India (SPMEPCI). This incentivizes foreign EV makers to set up manufacturing plants in India by allowing lower import duties.
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