According to a story in the Economic Times, Tesla and representatives from the Indian government are actively exploring the possibility of opening a network of auto parts and electronics stores in India. These discussions also centre on obtaining tax breaks and incentives, indicating a resurgence of interest on the part of the US-based electric car maker in the Indian market. Following Prime Minister Narendra Modi's recent meeting with Tesla CEO Elon Musk on his visit to the United States, the discussions have picked up steam.

Despite the government's request that Tesla assess the country's current auto component supply chain, according to ET sources familiar with the situation, Tesla is eager to develop its own supply chain ecosystem in India. An unidentified senior government official said that they had enquired about Tesla's specific needs and urged them to think about obtaining them from the Indian ecosystem. However, the representative admitted that Tesla currently has a strong network of suppliers, making the success of these early discussions essential.

Aiming to construct a manufacturing facility in India along with the required supportive ecosystem, officials from both Tesla in the US and Tesla India enquired during these discussions about the incentives structure for the firm and its partners. Additionally, they have sought specific details about Tesla-related tax advantages and incentives that may be offered.

Tesla has been meeting with entrepreneurs in India in addition to interacting with the government. The Society of Indian Automobile Manufacturers (SIAM) recently held a meeting in the nation's capital, and Tesla announced its desire to bring its own suppliers there. While Tesla maintained its preference for an "all in-house" strategy, SIAM underlined the existence of experienced and reputable Indian component makers and argued for their inclusion. The business underlined that only its current partners could reproduce its unique set of quality requirements.

The Indian government and Tesla are now in talks, which reflects the rising interest of foreign manufacturers in the country's electric car sector. To lessen pollution and its reliance on fossil fuels, India has been actively encouraging the use of electric vehicles. To encourage investment in the electric car industry and provide the required infrastructure, the government has put in place a number of programmes and incentives.

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