Won't favour company which creates jobs in China and mints profit in India: Minister on Tesla cars

After Tesla chief Elon Musk said he is "working through a lot of challenges with the government" in India, India's ministerKrishnaPal Gujjar told Parliament that it won't be granting subsidies or relaxation in taxes to the company since it has no plans to setup its manufacturing unit in the country.

"Why should we favour a company which creates jobs in China and mints profit from our markets? Our Prime Minister has a vision for all such foreign companies, if you want to sell your product in our country, then manufacture them here," India's minister of state for heavy industries Krishna Pal Gujjar told India's lower house of Parliament.

Musk wants to sell his electric cars in India, however, he had asked for import duty cuts before entering the highly competitive Indian car market.

Gujjar however told India's Parliament, "If they manufacture their electric cars in China, thousands of jobs will be created there, not for Indian youths here."

The minister told lawmakers that Tesla hasn't taken part in any government schemes and that it only "wants to exploit our market to mint profit".

Although the Indian electric car market is in its infancy, however, the Indian government had announced plans to promote the adoption of electric vehicles to reduce dependency on fossil fuels.

The government had also declared GST cut on electric cars from 12 per cent to 5 per cent and allowed GST reduction from 18 per cent to 5 per cent on charging stations for electric vehicles.

(With inputs from Agencies)