These investments, expected to total around Rs 3,000 crore, mark a significant response to the Centre’s import restrictions aimed at boosting domestic production. The new investments are anticipated to create several hundred jobs, with Yokohama, likely the largest investor, planning a plant in Haryana where nearly half the workforce will be women.
The Department for Promotion of Industry and Internal Trade (DPIIT) has designed the scheme to encourage capacity expansion by linking it to import permissions. This move addresses the earlier disruptions faced by foreign companies due to licensing requirements, particularly impacting high-end tyre imports.
“We are witnessing the positive outcomes of our initiatives and anticipate more companies will choose to manufacture in India,” TOI quoted a senior official as saying. “We are seeing the results of the steps we have taken and we are expecting more companies to come and make in India.”
Accelerating EV push
The development aligns with the government’s broader electric vehicle (EV) policy, which aims to permit lower duty imports for companies that establish local manufacturing facilities. The Modi administration is actively courting major EV players like Tesla, seeking to create jobs and expedite the shift to EVs. Although Elon Musk’s expected visit was canceled, officials remain optimistic about future engagements, with other firms like Vinfast showing interest. The Department of Heavy Industries is currently collaborating with stakeholders to finalize the guidelines for the new policy, with invitations for bids expected in the coming months.(With TOI inputs)