TESLA TO START MANUFACTURING IN INDIA ….BOOST TO INDIAN MARKETS
It is a massive success of indian govt that one of the leading automobile company of the world, TESLA is investing in india.
India has been working on attracting foreign companies to invest in Indian market from long ago. They launched SEZs(special economic zone) introduced FAME 2 ( faster adoption and manufacturing of hybrid and electric vehicles). These actions of govt have proved to be productive.
HISTORY OF TESLA_
Tesla was established on 1st july 2003 in California, USA. It was named on the tribute to inventor and mechanical engineer Nikola Tesla. Tesla company manufactures electric vehicles, batteries, solar panel and roofs. It’s current total asset is US$52.148 billion. It’s current CEO is Elon musk ( from 2008). It has its production house in America, china, europe, Germany, Netherlands,Europe.
INVESTMENT IN INDIA
Tesla company has decided to built cars in india by setting its production house in south indian states most probably karnataka. The Netherlands production house of Tesla is going to invest in india due to the indian double taxation treaty with Netherlands which will give some rexlation from tax.
WHY TESLA WANTS TO INVEST IN INDIAN MARKET…
REASON 1.India has proved himself as a biggest stock market and exporting center all over the world. As per an interview of Elon musk, Telsa would like to increse its exporting and production from 365,000( in 2019) to 20 million by 2030 and this couldn’t be possible without indian market.
2. India has a huge scope of developing in the arena of electric power probably more than china and US.
3. India has largest no. of human power in the sector of engineering and ccomputer. As a matter of fact, tesla would be able to hier more engineers at low cost.
BENEFITS TO INDIA__
1. Notably it will promote “made in India”
2. It will generate empolments.
3. It will attract more foreign companies to invest and produce in india.
4. Indian automobile companies will face competition and would rather extent their production.
It is obvious that if the production of vehicles went profitable for Tesla then they would start the production of other electric products like rooftop solar panel and batteries.
The one and only disadvantage of this step of govt would be that there will be more competition in the market and small startup companies would face stiff competition.
To avoid such clashes, govt should take preventive measure and proper action like small startup loans and other financial support to small businesses.