India approves e-vehicle policy with tax relief to rev up manufacturing hub dream

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Key Points

The Indian government has given the green light to a new electric vehicle scheme with tax relief aimed at positioning India as a prime manufacturing hub, while the Asian nation seeks to attract foreign money for local production from the likes of Tesla...

India plans to lower import taxes on select EVs for companies committing to investments of over $500 million and establishing manufacturing facilities within three years..

This landmark decision not only aims to attract heavyweights like Tesla but also underscores India's proactive stance in harnessing foreign investment to drive local production and foster a thriving EV ecosystem...

While the scheme needs a minimum investment of Rs 4,150 crore or $500 million, there is no upper threshold for investments from EV manufacturers to pave way for advanced technology to be locally produced within the country...

For vehicles with a minimum CIF value of $35,000, a 15% customs duty (as applicable to Completely Knocked Down units) will be levied for a duration of five years, subject to the manufacturer setting up manufacturing facilities in India within a 3-year period..

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