New Delhi: Tesla production coming into India would be a 'win-win' situation for both parties, as it would provide the company with the opportunity to leverage 1.4 billion people and will create an ecosystem of chip manufacturing in the country, Mukesh Aghi, the President of the US-India Strategic Partnership Forum, said on Sunday.

He also emphasised that several US companies are moving their production into India because of increased "harassment" in China.

Mukesh Aghi said, "I know there are discussions going on. I think it is a market opportunity for Tesla to leverage 1.4 billion people, to leverage its engineering capability, which is India, to be able to build a car and export it to the rest of the world".

He further said that Tesla production in India will also create an ecosystem for chip manufacturing in the country.

"I think it's good for India to have Tesla also, because what really happens is it's not just about EV. A Tesla car takes around 2000 chips. And so if they're going to manufacture a few hundred thousand cars a year, it creates an ecosystem for chip manufacturing also,"

He added, "So it is a win-win for everybody. I think both the Tesla car makers and also the government of India has to work out their policies while making sure that domestic car manufacturers are not impacted".

The USISPF CEO also cited the example of Apple company, whose production of the iPhone 16 in India is expanding immensely.

"It is in the interest of US companies to protect this supply chain. What we see is the increased harassment of US companies by China, so they want to be able to supply goods that are effective, efficient and so India becomes pivotal for their strategy," the USISPF CEO said.

He added, "The classic example is Apple. Three years ago, it had no production in India, next year, 25 per cent of Apple 16 (production) would be made in India itself. So, I think, slowly, gradually, companies are moving their production to India. It is not just about supply chain, it is also about leverage the growing Indian market".

In June last year, Prime Minister Narendra Modi met Tesla CEO Elon Musk and invited him to explore opportunities in India for investments in electric mobility and the rapidly expanding commercial space sector.

After the meeting, Musk had said he was incredibly excited about the future of India. He said that India has more promise than any large country in the world.