Mumbai, April 16: Ahead of Elon Musk's arrival in India, Tesla and Tata Electronics have made a strategic deal for semiconductors. The government has pushed the semiconductor mission in India so that more companies can grow the promising sector. Tesla has reportedly signed an agreement with Tata Electronics to procure semiconductor chips for international operations. 

According to a report by ET, India is the world's fastest-expanding automotive market, which is why the Elon Musk-run Tesla has been considering entering the country. The reports have confirmed that the Tesla CEO and tech billionaire Elon Musk will visit India on April 21 and 22 to meet PM Narendra Modi and break down his significant investment plans there. Made in India Servers: Hewlett Packard Enterprise Unveils India-Made Servers To Meet Growing Demand of Consumers in Country.

The Tesla and Tata Electronics deal was executed months ago, according to a report by Business Today. The Tesla deal reportedly positioned Tata Electronics as a trusted supplier for the company that wished to build a semiconductor value chain in India. Before Elon Musk came to India, the government also reportedly granted permission to his Starlink internet services, with final approval still pending with the Communication Minister Ashwini Vaishnaw, 

Business Today emphasised that signing a deal with Tata Electronics could suggest Tesla's strategic move of supply chain diversification, strengthening EV's presence in India. It also mentioned that Tata Electronic started recruiting top-level executives in India to increase the workforce. Tata Electronics has reportedly invested $14 billion in the semiconductor operations and established manufacturing facilities at Gujarat's Dholera, Assam's Morigaon and Tamil Nadu's Hosur. Google-Backed Cropin Technology Launches Open-Source AI Model ‘Akṣara’ To Empower Farmers and Agriculture Ecosystem.

Elon Musk's India visit is expected to bring $2 -3 billion in investment in the country as he sets up the Tesla EV manufacturing facility there. The Indian government recently updated the EV policy to attract foreign electric vehicle makers. The new policy, introduced on March 15, offered incentives, tax relief, and reduced import taxes on selected electric vehicles.

(The above story first appeared on LatestLY on Apr 16, 2024 03:49 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website