WASHINGTON – In a major development affecting US-India economic relations, American President Donald Trump has prevented Tesla, the world’s leading electric car manufacturer, from establishing a manufacturing plant in India
The disclosure was made by India’s Minister for Heavy Industries, H.D. Kumaraswamy, during a recent press conference.
According to Kumaraswamy, Tesla has shown interest only in opening showrooms in India and currently has no plans to set up a local production facility.
The announcement follows President Trump’s earlier remarks in an interview with US media in February, where he stated that allowing Tesla to manufacture vehicles in India would be “unfair” to the United States.
The move is likely to impact India’s ambitions to become a global EV manufacturing hub and may influence the investment strategies of other international automakers eyeing the Indian market.
President Trump has reiterated in recent days that he expects major American corporations—including Tesla and Apple—to manufacture their products and components domestically. “We want American jobs and American manufacturing to stay in America,” Trump said in a recent statement.
Elon Musk, Tesla’s CEO, has previously cited India’s high import duties as a major barrier to investment and local production in the country. Despite several rounds of discussion with Indian officials, a breakthrough has yet to be achieved.
In line with his protectionist policies, Trump has also warned Apple that if the company does not shift iPhone manufacturing to the US, it could face tariffs as high as 25%.
Experts are of the view that such actions are in line with Trump’s “America First” economic agenda, which emphasize retaining American capital and manufacturing within national borders to boost domestic job growth and industry.
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