Tesla’s Entry to Enhance India’s Global Manufacturing Appeal, FM Sitharaman

Ira Singh
Khabar Khabaron Ki,19 April’24

Union Finance Minister Nirmala Sitharaman has reaffirmed the Indian government’s commitment to transforming the nation into a premier global manufacturing destination. Besides,Sitharaman has extended a warm welcome to Tesla Inc., affirming that the electric vehicle giant’s entry into India will significantly enhance the country’s appeal as a global manufacturing hub.In an exclusive interaction with a media house, Sitharaman emphasized India’s skilled workforce and cost advantage as compelling factors for international manufacturers and entrepreneurs to establish their presence in the country.

Sitharaman’s remarks come at a crucial time as India seeks to leverage its strengths and capitalize on emerging opportunities in the global manufacturing landscape. With the government’s renewed focus on enhancing the ease of doing business and fostering a conducive environment for investment, India is poised to emerge as a preferred destination for manufacturing activities.

FM Sitharaman also added, if hi-tech companies are coming to India, it means our policies are correct and it is in India’s interest as well to export overseas.”Shares of several auto ancillary companies have noted a rise in their share price after Tesla Inc CEO Elon Musk announced his India visit. The visit is being seen as a step forward in bringing Tesla to India.

Sitharaman also reiterated the government’s ‘Make in India’ initiative, which aims to promote indigenous manufacturing across various sectors and reduce dependency on imports, and which has resulted in defence exports to rise past Rs 25,000 crore.The initiative, launched in 2014, seeks to harness India’s demographic dividend and foster economic growth through the development of manufacturing capabilities.

The push to manufacture in India is part of Government’s policy push to ramp up GDP and exports from India, and the Atmanirbhar mission has been a part of this initiative, Finance Minister reportedly quoted as saying.

India’s burgeoning market potential, coupled with its skilled workforce and cost advantage, positions the country as an attractive proposition for global companies seeking to expand their manufacturing footprint. Sitharaman’s reassurance further reinforces India’s commitment to creating an enabling ecosystem for businesses to thrive and contribute to the nation’s economic growth and employment generation.