The action is perceived as an effort to entice Tesla and other major automakers to establish production facilities in India.

For more than a year, Tesla has been in discussions with the Indian government about joining the market.

but has been apprehensive about doing so because of the high import taxes.

It is unclear when the new policy will go into effect because it is still being finalised.

However, the government is eager to establish India as a significant EV production centre,

this action is considered to be a step in that direction.

By 2030, the government wants to see sales of electric vehicles reach 30%.

In order to accomplish this goal,