In US, Goyal to make pit stop with Musk to discuss Tesla’s India entry

Indian trade minister Piyush Goyal will arrive in the US on Monday for a four-day visit, where he will engage with US officials and industry leaders, including Tesla chief executive Elon Musk. 

The meeting between Goyal and Musk is set to advance the negotiations for Tesla’s plan to set up a factory in India. 

Goyal is on a visit to San Francisco from 13 to 16 November to attend ministerial meetings of the Indo-Pacific Economic Framework (IPEF) and the Asia-Pacific Economic Cooperation (APEC). 

From November 13-14, Goyal will attend the third in-person IPEF ministerial meeting, where significant updates on the progress of negotiations are expected.

The minister will also represent India at the APEC economic leaders’ engagements from 15-16 November.

Goyal will interact with businesspeople, prominent academics, US officials, and industry leaders during the visit to further strengthen economic and commercial relations between the two nations, a statement from the ministry of commerce and industry said.

The minister will also hold bilateral meetings with the US secretary of commerce, Gina Raimondo, US trade representative Katherine Tai, and representatives from various sectors and industries. 

Bilateral meetings are scheduled with US secretary of commerce Gina Raimondo and representatives from various sectors and industries. The focus of these meetings will be addressing trade barriers, promoting investments, and fostering greater cooperation in areas such as technology and innovation, as per the ministry’s statement.

A key focus of the visit will be the joint event, co-chaired with Raimondo, on the “India-USA Innovation Handshake Initiative.” This initiative aims to address specific regulatory hurdles to cooperation and promote further innovation and job growth, particularly in emerging technologies.

Goyal will also participate in an investors’ roundtable, along with one-to-one meetings with CEOs. He is expected to interact with major technology, entrepreneurship, and academic communities in the Bay Area, specifically in Silicon Valley, to undertake focused discussions with American companies looking to invest or expand in India across sectors such as electronics, semiconductors, technology, FinTech, etc.

On Tesla, discussions between Musk and Goyal will focus on the company’s plans to set up a factory in India, sourcing more components, and establishing charging infrastructure nationwide. 

The minister is also likely to discuss a potential change in India’s import policy, reducing the tax rate to 15% on fully built EVs if a company commits to some local manufacturing.

Last week, Reuters reported that the Prime Minister’s Office (PMO) held a meeting with various ministries to expedite the new EV policy before Goyal’s planned visit. 

Tesla and Indian officials have had several rounds of talks over the US EV maker’s plan to set up a factory. 

Musk also met Prime Minister Narendra Modi in New York in June during the Indian leader’s visit to the U.S., where discussions centered around the company’s plan to manufacture a $24,000 car in India for the South Asian market.