Global tyre manufacturers, including Michelin, Bridgestone, and Goodyear, are set to invest significantly in India's manufacturing sector, with new entrants like Yokohama and Birla Tyre also eyeing opportunities under a government scheme linking imports to local investment, according to a report by TOI on Wednesday. These investments, which are expected to total around Rs 3,000 crore, reflect a strong response to the Indian government's import restrictions designed to boost domestic production. This new influx of capital is anticipated to create several hundred jobs. Yokohama, likely to be the largest investor, plans to set up a plant in Haryana where nearly half of the workforce will be women.

The scheme, crafted by the Department for Promotion of Industry and Internal Trade (DPIIT), encourages capacity expansion by linking it to import permissions. This approach aims to address the disruptions foreign companies previously faced due to licensing requirements, particularly for high-end tyre imports.

"We are witnessing the positive outcomes of our initiatives and anticipate more companies will choose to manufacture in India," a senior official told TOI. “We are seeing the results of the steps we have taken and we are expecting more companies to come and make in India."

This 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 to create jobs and expedite the transition to EVs. Despite Elon Musk's expected visit being canceled, officials remain optimistic about future engagements, with other firms like Vinfast showing interest.