This is the first time India has publicly admitted that it has not been able to lure investment dollars from Musk.

Tesla does not want to produce cars in India, a federal minister said on Monday as the government finalised its electric vehicle policy, with the EV giant's plans currently focused on importing cars into the country.

Tesla has shown an obvious reluctance to commit to local electric vehicle (EV) manufacturing in India, even though the country is currently offering significant incentives to encourage such investments.