Tesla is prepared to open a manufacturing in India, subject to this requirement

In exchange for the government lowering the import duty on Tesla vehicles to 15% for the first two years of operation, the company is willing to invest up to $2 billion to establish a factory in India.
India is developing a new electric vehicle (EV) policy that would reduce import tariffs to as low as 15% in exchange for a commitment to some local manufacture. Currently, import taxes are 100% on cars costing more than $40,000 and 70% on all other automobiles.

With the Model 3, Model Y, and a new hatchback priced at $39,000 (Rs 32.37 lakh), $44,000 (Rs 36.52 lakh), and $25,000 (Rs 20.75 lakh) in the US, respectively, Tesla is preparing to begin operations in India.

If the government accepts the decreased duty for 12,000 vehicles, the Elon Musk-led electric vehicle (EV) manufacturer is prepared to invest up to $500 million, and if the concession is for 30,000 vehicles, up to $2 billion.

India now imposes a 100% import charge on cars costing more than $40,000 after insurance and freight, and a 70% duty on cars costing less. In addition, in the event that the US automaker fails to allocate cash in accordance with its pledge, the government could demand a bank guarantee connected to the capital commitment in order to recover loss due to import duty.

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The government is considering whether to invest the $2 billion that Tesla has proposed, but in contrast to Tesla, it wants to import fewer cars at a lower duty.
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