Indian FM Denies Plans for Electric Vehicle Import Tariff Reduction

28 Aug 2023 CW Team

Addressing reporters at the B20 summit, Union Finance Minister Nirmala Sitharaman stated, "I do not have any proposal in front of me to lower the import duties on electric vehicles."

This reduction in import duties could benefit companies like Tesla, which have expressed interest in entering the Indian market and have submitted a proposal to establish a local car manufacturing facility. An official familiar with the matter was cited in the report as mentioning that there seems to be an alignment with Tesla's proposal, and the government is displaying interest.

Concerns held by Tesla regarding the Indian market are noteworthy. Elon Musk, the founder of Tesla, has raised concerns about the high tariff rates in India. After careful consideration, the company initiated discussions about potentially entering the Indian automobile market. In 2021, Tesla advocated for a reduction in the existing 100% import tax imposed on electric vehicles (EVs) in its efforts to establish a presence in India.

However, the potential agreement between Elon Musk and Indian authorities did not come to fruition, as the Indian government stressed the necessity for a solid commitment to local manufacturing as a prerequisite for any arrangement.

The clarification provided by Nirmala Sitharaman has dampened the expectations of several manufacturers that had risen after the Reuters report. It remains uncertain at this point whether the decision to maintain the existing import tax rates will impact Tesla's plans to establish its car manufacturing facility.

Union Finance Minister Nirmala Sitharaman refuted the claims that the government is contemplating a reduction in import tariffs for electric vehicles if car manufacturers collaborate with local production units. This clarification follows a previous report by Reuters stating that the central government is potentially considering a decrease in import duties, potentially as low as 15%, from the current rates of 100% for vehicles exceeding ₹33 Lakhs in cost and 70% for others. Addressing reporters at the B20 summit, Union Finance Minister Nirmala Sitharaman stated, I do not have any proposal in front of me to lower the import duties on electric vehicles. This reduction in import duties could benefit companies like Tesla, which have expressed interest in entering the Indian market and have submitted a proposal to establish a local car manufacturing facility. An official familiar with the matter was cited in the report as mentioning that there seems to be an alignment with Tesla's proposal, and the government is displaying interest. Concerns held by Tesla regarding the Indian market are noteworthy. Elon Musk, the founder of Tesla, has raised concerns about the high tariff rates in India. After careful consideration, the company initiated discussions about potentially entering the Indian automobile market. In 2021, Tesla advocated for a reduction in the existing 100% import tax imposed on electric vehicles (EVs) in its efforts to establish a presence in India. However, the potential agreement between Elon Musk and Indian authorities did not come to fruition, as the Indian government stressed the necessity for a solid commitment to local manufacturing as a prerequisite for any arrangement. The clarification provided by Nirmala Sitharaman has dampened the expectations of several manufacturers that had risen after the Reuters report. It remains uncertain at this point whether the decision to maintain the existing import tax rates will impact Tesla's plans to establish its car manufacturing facility. See also: Maharashtra's electric vehicle power sales surge 216%India approves 10,000 electric buses for sustainable urban transport

Infrastructure Transport

07 Apr 2026

Tunnelling Begins for Thane, Borivali twin tunnel project

Tunnelling work has commenced for the 11.84-km Thane–Borivali Twin Tunnel, set to be India’s longest urban road tunnel, marking a key milestone in Mumbai’s infrastructure development.As per a post shared by Mumbai Metropolitan Region Development Authority on social media platform X, the tunnel boring machine (TBM) ‘Nayak’—the country’s largest single-shield hard rock TBM for an urban tunnel—was launched by Devendra Fadnavis on Tuesday. The event was attended by Eknath Shinde and Sunetra Pawar, among other dignitaries. A second TBM, ‘Arjuna’, is expected to be launched so..

Infrastructure Transport

07 Apr 2026

Large Format Store Planned At M G Road Metro Station

M G Road station in Bengaluru is set to host the city’s first large-format commercial and experience space, with planning led by Bangalore Metro Rail Corporation Limited. BMRCL has invited proposals to develop and operate a central business district destination at the Purple?Pink Line interchange. The plan positions the station as a commercial hub designed to serve a broad commuter base across the city. The proposal is part of a broader effort to activate transit nodes commercially. Tender documents set a minimum monthly rental of Rs 0.944 million (mn), inclusive of GST, for the large-format..

Infrastructure Energy

07 Apr 2026

Government Cancels Auction Of Eleven Critical Mineral Blocks

The government has cancelled the auction of 11 critical and strategic mineral blocks after receiving a poor investor response and failing to attract a sufficient number of qualified bidders. The decision represents a setback to plans to ramp up domestic exploration and production of critical minerals amid global supply chain disruptions and rising demand for materials used in clean energy and advanced technologies. The mines ministry issued an annulment notice setting out the reasons for the cancellations. The annulment notice indicated that the auction process for five mineral blocks was canc..