Prime Minister Narendra Modi recently engaged in a phone conversation with Tesla CEO Elon Musk, marking a significant step in strengthening the bilateral ties between India and the United States. This dialogue underscores the growing interest in enhancing collaboration, particularly in the realms of electric mobility and technological innovation.

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 Strengthening Bilateral Relations

The phone call between PM Modi and Elon Musk is seen as a continuation of their ongoing discussions aimed at fostering deeper economic and technological partnerships between India and the U.S. This interaction highlights the mutual interest in exploring avenues for cooperation that can benefit both nations.

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 Tesla’s Interest in the Indian Market

Tesla has expressed a strong desire to enter the Indian market, with Elon Musk stating that the company aims to launch in India “as soon as humanly possible.” However, challenges such as India’s 100% import tariffs on electric vehicles have made potential customers anxious and deterred the company’s entry into the market. Despite these hurdles, Tesla is actively seeking ways to navigate the regulatory landscape and establish a presence in India .​

India’s Electric Vehicle Sector Growth

India’s electric vehicle (EV) sector has witnessed significant growth, with sales increasing from just 2,000 units in 2014-15 to 1.2 million units in 2023-24. This surge is attributed to government incentives, infrastructure development, and a growing consumer interest in sustainable transportation options. PM Modi has emphasized that India is moving rapidly in the EV domain and has invited global companies to invest in the country’s electric mobility sector .​

 Broader Technological Collaboration

Beyond electric vehicles, the conversation between PM Modi and Elon Musk also touched upon other areas of technological collaboration, including space exploration and artificial intelligence. Both leaders recognize the potential for joint efforts in these fields to drive innovation and contribute to global technological advancements.

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 PM Modi’s Perspective on Foreign Investment

PM Modi has consistently advocated for foreign investments that contribute to India’s development. He has welcomed investments from global companies but emphasized that the products should be made by Indians, ensuring that the benefits of such investments reach the local workforce and contribute to the nation’s growth .​

The recent phone call between PM Modi and Elon Musk signifies a positive step towards deeper collaboration between India and the United States, particularly in the fields of electric mobility and technology. As both nations continue to explore avenues for partnership, the outcomes of these discussions could pave the way for significant developments in various sectors.​