Tesla's interest in the Indian market is growing.

The government is considering possible import tax reductions as it develops its electric vehicle (EV) strategy.

according to a report on Friday, for EV manufacturers eager to set up their production facilities in the nation.

The action attempts to give Prime Minister Narendra Modi's strategy a big boost.

to dramatically increase the country's EV production capacity, according to sources cited by Reuters.

The government is thinking about lowering the import tax on electric cars (EVs) from 100% to 15%,

If the automakers agree to produce at least 40% of the vehicles domestically,

Reuters quoted sources as saying.