Tesla Factory In India / Will Elon Musk 'betray' Donald Trump by bringing Tesla to India?

Tesla Factory In India: The world's largest electric vehicle company Tesla is now all set to come to India. Elon Musk is trying to enter Tesla in India from the year 2022. Recently, Prime Minister Narendra Modi and Elon Musk met in the US, after which Tesla has started the process of leasing space and hiring staff for its showroom in India.

Tesla's entry in India and policy changes

Elon Musk's Tesla has always complained about coming to India that the import duty here is very high. Now the Indian government has changed its EV policy, under which Tesla has been allowed to bring 8,000 cars every year by paying only 15 percent import duty. However, for this, Tesla will have to invest at least $500 million in India and commit to setting up an assembly line (factory).

Will this move of Musk be unfair to America?

Former US President Donald Trump has expressed concern over Tesla's growing interest in India. During a recent interview, Trump said that if Elon Musk sets up a factory in India, it would be "very unfair" to the US. Trump has long been vocal against the high tariffs imposed by other countries on American products.

According to a White House report, India imposes a 100 percent tariff on motorcycles imported from the US, while the US levies only 2.4 percent tax on motorcycles imported from India. Trump said in this context that if Musk invests in India, it could go against US trade policy.

Musk's role in the Trump administration

Elon Musk has been given a very influential role during Donald Trump's tenure. The Trump administration has created the 'Department of Government Efficiency', whose head has been appointed Elon Musk. This department is monitoring US government expenditure and exposing irregularities in funds. In such a situation, Musk setting up a factory in India may be contradictory to Trump's policies.

Impact on 'Make in America' policy

Donald Trump recently supported the 'Make in America' policy at the 'World Economic Forum' and encouraged global companies to manufacture in the US. He also said that companies that produce outside the US may face heavy tariffs.

Conclusion

Elon Musk's decision to set up a Tesla factory in India is a big step for the Indian market, but it could pose a challenge for the US and the Trump administration. Musk will have to decide how to balance his expansion in India so that it does not have a negative impact on US policies and trade relations.