One of the richest persons in the world and CEO of Tesla, Elon Musk Cancels Trip to India for now his much anticipated trip to India. During his tour, the CEO and creator of SpaceX was supposed to meet with Prime Minister Narendra Modi in New Delhi.
Why Elon Musk decide to postpone his trip to India?
“Unfortunately, very heavy Tesla obligations require that the Elon Musk Cancels Trip to India, but I do very much look forward to visiting later this year,” Elon Musk posted to X.
Elon Musk, who also controls X (previously Twitter), verified this week that he will be meeting with Prime Minister Modi in India.”Looking forward to meeting with Prime Minister Narendra Modi in India,” he wrote in a post on X.
Unfortunately, very heavy Tesla obligations require that the visit to India be delayed, but I do very much look forward to visiting later this year.
— Elon Musk (@elonmusk) April 20, 2024
It was anticipated that Elon Musk would declare a $2–3 billion investment to establish a manufacturing in India.During PM Modi’s June 2018 visit to the US, Elon Musk had a meeting with the latter. The CEO of Tesla talked about PM Modi, his intended travel to India in 2024, and Tesla’s strategy to join the Indian market and establish the eagerly awaited factory.
Elon Musk’s visit to India was revealed a few months after the government of India unveiled a new policy pertaining to electric vehicles. This policy gave import duty exemptions to individuals who established manufacturing units in India with a minimum investment of $500 million.
It was anticipated that the founder of Tesla would use his visit to boost his second big project, Starlink, which is located in India. According to “people familiar with the matter” cited by Bloomberg, Starlink was given guarantees by the national government that it might begin operations in the nation as early as the third quarter of this year.
According to experts, Starlink’s operations in India will further strengthen the security cooperation between India and the U.S.India relaxed its regulations on foreign direct investment in the space industry in February, enabling businesses to invest in enterprises that produce satellites and rockets.
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Nirmala Sitharaman responds on “CEO of Tesla Elon Musk Cancels Trip to India?”
Following the announcement by tech entrepreneur Elon Musk that he is delaying his trip to India, which was originally planned for April 21–22, until “later this year” due to “Tesla obligations,” Union Finance Minister Nirmala Sitharaman stated that the nation is putting policies in place to ensure that large corporations are drawn to India for investment, particularly in light of sectors voicing concerns about China.
“When large corporations express interest in investing in India, we make sure to provide an inviting environment for them to do so. If there are any issues during that process, we will discuss them, but everything we do is done through policies, which has been beneficial.
We have made policies in a way that we are making India an attractive destination, both for manufacturing and for services, especially after China started to be a concern for many industries or many experts in domain areas,” Sitharaman said on Saturday at a press conference in Ahmedabad.
In response to a question from the media about the Union Finance Ministry’s perspective on Musk’s decision to postpone his trip to India in light of the incentives he has been pursuing from the Indian government for manufacturing in India, Sitharaman responded.
Sitharaman is on a day-long tour of Gujarat ahead of the Lok Sabha elections; on Saturday, he has appointments in Ahmedabad and Vadodara.
Elon Musk Cancels Trip to India because of his “very heavy Tesla obligations.” The delay occurs a few days after the Center convened its initial round of consultations with stakeholders in the automotive sector, such as Tesla representatives, to develop guidelines for implementing the recently announced EV policy.
The new policy eases duty for a limited amount of EV imports for manufacturers setting up facilities in India with a minimum expenditure of Rs 4,150 crore, which is expected to open the door for Tesla to import cars into India at cheaper duties. Tesla wanted to build a manufacturing facility in India, but first it needed tariff reductions.
Notably, the Foreign Exchange Management Act’s rules were changed on April 16 by the Union Finance Ministry to operationalize the ministry’s earlier decision to permit up to 100% foreign direct investment in the space sector through three categories of liberalized entry routes. This was done ahead of Tesla CEO Elon Musk Cancels Trip to India to meet with Indian spacetech startups.
In the category of manufacturing and operating satellites, satellite data products, ground segment, and user segment, the notification permitted 100 percent foreign direct investment (FDI) in the space sector. Of this amount, up to 74 percent could be invested automatically; any investment exceeding this amount would require government approval.