India’s recent parliamentary update may pose a significant setback for Tesla’s ambitions in the country. The Minister of State for Commerce and Industry, Som Parkash, clarified that the government currently has no proposals to offer subsidies or exemptions on import duties for electric vehicles (EVs).

Why it matters? This firm stance aligns with India’s broader strategy to foster industrial growth and domestic value addition, emphasizing the Make in India initiative. It also underscores the government’s commitment to enhancing local production and attracting both domestic and foreign investment to build a competitive global presence.

According to a PTI report, Parkash, in his written reply to the Lok Sabha, emphasized the absence of proposals for exemptions or subsidies on EV imports. He highlighted the government’s efforts in launching the Production Linked Incentive (PLI) scheme with an allocation of ₹25,938 crore.

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What’s this scheme about? This scheme aims to financially incentivize domestic manufacturing of advanced automotive technology products, including EVs and their components. Additionally, it focuses on establishing giga-scale Advanced Chemistry Cell (ACC) manufacturing facilities in India, targeting a capacity of 50 giga-watt hour (GWh).

The minister said this while replying to a question whether it is a fact that the government has a proposal under consideration to exempt Tesla and other multinational car companies from local value addition of cost in heavy batteries, semiconductors and even magnetic parts and also subsidy on the import duty on the import of electric vehicles in India.

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