Turns Out Musk Was Indeed Misinformed: Local Sourcing Norms Are Not Applicable To Manufacturers

On Monday (22 May), many media outlets including Swarajya, had reported that the central government’s ‘Make In India’ policy might be a reason why Tesla was not making its electric cars in India after the company’s co-founder and Chief Executive Officer (CEO) Elon Musk tweeted this:

However, this isn’t true. Musk, as it turns out, was indeed misinformed.

The Ministry of Commerce and Industry, through its ‘Make In India’ handle on Twitter, informed that local sourcing norm applies only to foreign retailers - not manufacturers, as goods are manufactured in India.

According to the local sourcing policy, “a foreign investor is permitted to sell in any manner: wholesale, retail including e-commerce,” the ministry said, adding that the policy even permits wholesale of imported goods without sourcing conditions.

In fact, Tesla can import the car components it requires and assemble them in India.

Earlier this year, Musk had tweeted saying that the company will enter the Indian market by summer in 2017.