It’s rather simple. The whole “Make in India” initiative is all about speeches and public appeasement. On grounds, it has a very less impact. The foreign investors still find it difficult to enter Indian market. The manufacturers are sick of the internal politics and restrictive regulations. The corruption still flies high in the country.
While Tesla was supposed to be launched only last year’s summer, their plans were cancelled. Upon asking “Are there any chances for Tesla to release in India in 2017 or 2018,” Tesla CEO Elon Musk tweeted back saying, “Maybe I'm misinformed, but I was told that 30% of parts must be locally sourced and the supply doesn't yet exist in India to support that.” Evidently, the government hasn’t done enough, except to toss around the phrases, in bringing global brands in the country.
All being said though, hopefully in the next year or two we will see Tesla enter India, thanks to the growing market of luxury vehicles and loosening FDI. Also, In India Musk has quite a bit of influential followers. They can all be a great help in not just bringing Tesla’s Model 3 in the country but also increase its sale.
By the end of 2018, we can see this turn into reality. Another way of looking at it is General Election 2019 is approaching. If BJP government can manage to bring this giant brand in the country that could really help them in their campaigns.