Pannun episode sandboxed: Tesla is still likely to come to India

The India-US controversy surrounding the alleged plot to assassinate Khalistan separatist Gurpatwant Singh Pannun has been sandboxed and is not likely to affect any economic relation between the two nations, citing MUKESH AGHI, President and Chief Executive Officer of the US-India Strategic Partnership Forum, Indian Express reported.

He further indicated that most US companies, including Apple Inc., are looking to India to de-risk their supply chains.

Regarding the highly awaited arrival of

electric vehicle (EV)

Answering the question of the aftermaths of the Pannun episode, Aghi said that the relationship between India and the US is influenced by several variables. The Pannun incident has been sandboxed and is isolated. Because there is sufficient maturity on both sides, it has been placed in a sandbox. One gets the impression that a situation such as that shouldn't ruin the partnership as a whole. The supply chain needs to be secured for US enterprises. The relationship is being driven by it. It is essential to have access to each other's markets. The five million Indian Americans living in the US are another influence. 

Commenting on Tesla’s likely arrival in India Aghi stated that the topic of Tesla has not yet been discussed and Tesla is awaiting new EV policies from the Indian government. He further said “However, we need to go beyond Tesla— We must consider it not just from the standpoint of electric vehicles but also from the standpoint of how it may create an ecosystem for the production of chips. About 2,000 chips are needed for a Tesla vehicle. Consider the ecology if they intend to build a production facility capable of producing 500,000 automobiles. World-class storage technology is offered by Tesla. When government regulations are simplified, Tesla may enter the market. However, as of right now, there is no conversation."

India has been long trying to pull technology transfer from abroad through various schemes like Product Linked Incentives, various tax benefits and many others. Amid this, the global competency of semiconductor manufacturing seems saturated in the hands of a few countries. USA’s Chip 4 alliance on the one hand and China on the other has limited the supply chain of semiconductors that are a crucial part of battery manufacturing of EVs. With the barrier-less trade between the USA and India, it is anticipated that the USA’s companies like Tesla will find India favourable for their manufacturing units. Lately, according to some reports Tesla has also leased a place for their office in Pune indicating the heavy possibility of the company to enter into the Indian EV market.