India's stable policies continue to facilitate biz environment: Modi to Musk

Prime Minister, Narendra Modi thanked Elon Musk, the CEO of Tesla and SpaceX for congratulating him on his electoral victory in the 2024 Lok Sabha elections.

PM Modi replied to Musk in a post on the social media platform X (formerly Twitter) saying that the talented Indian youth, demography, predictable policies and stable democratic system will continue to create a favourable business environment in the country.

"I appreciate your greetings @elonmusk. The talented Indian youth, our demography, predictable policies and stable democratic polity will continue to provide the business environment for all our partners," PM Narendra Modi added in his post.

Appreciate your greetings @elonmusk. The talented Indian youth, our demography, predictable policies and stable democratic polity will continue to provide the business environment for all our partners. https://t.co/NJ6XembkyB

— Narendra Modi (@narendramodi) June 8, 2024

On June 7, Musk congratulated the Indian PM on being elected Prime Minister of India for the third time. In a post on his X timeline, Musk said he looks forward to his companies doing exciting work in India."Congratulations, Narendra Modi on your victory in the world's largest democratic elections! Looking forward to my companies doing exciting work in India," Musk posted on X.

According to various media reports, Tesla is willing to set up manufacturing plants in states such as Maharashtra, Gujarat, and Tamil Nadu. The expected size of the investment was estimated to be between $2 billion and $3 billion, according to reports.

In July last year, the company added that it wants to build a factory in the country to make a car that costs around ₹17,30,000.

Musk was set to visit India in April this year, but he delayed his trip to India at the last minute and visited China.

"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," Musk had said.

The government is actively working to promote manufacturing at home in the electric vehicle sector. Apart from the FAME initiatives that commenced in 2019, more recently, it reduced the import tax on certain EVs for manufacturers who pledged to invest at least USD 500 million and begin manufacturing within three years.

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