Investment decisions, can often be influenced by a variety of factors. Both economic and logistical considerations can play a significant role.
Investment decisions, can often be influenced by a variety of factors. Both economic and logistical considerations can play a significant role. In the case of Tesla, which is reportedly in an advanced stage of talks to implement its plans to set up a manufacturing plant in India, political considerations seem to be playing their part. Tesla’s proposed plant has become the bone of contention for two Indian states: Telangana and Gujarat. Tesla’s plans are likely to involve a direct investment of $3 billion to produce a new small car from an Indian plant. The total investment over the next five years could be nearly $30 billion, both directly and indirectly, in the manufacturing plant, battery ecosystem, and ancillary industries. There have been serious claims by Telangana Chief Minister Revanth Reddy that Tesla was initially interested in investing in Telangana, but it was pressured to shift its investment to Gujarat. His statements suggest that Prime Minister Narendra Modi and Union Home Minister Amit Shah have used their political influence on Tesla to locate its plant in Gujarat instead of Telangana. In an interview with India Today, he stated that India was Gujarat alone. Is not Telangana state part of the nation, he questioned.
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