India is close to finalising a deal that would allow Tesla to import its electric vehicles and set up a manufacturing plant within two years.
Gujarat, Maharashtra, and Tamil Nadu are being considered for the manufacturing venture.
Tesla plans to invest around $2 billion initially in a new Indian plant and purchase auto parts from India worth up to $15 billion.
Tesla's CEO Elon Musk expressed plans for a 'significant investment' in India, and intends to visit in 2024.
Union Minister Piyush Goyal visited the Tesla factory and plans to meet Elon Musk soon.