One quick thing: Google opens new campus 'Ananta' in Bengaluru, one of its largest 

In today’s newsletter:

• Tesla set to shake up India's EV market 
• IndiaAI triggers reverse brain drain 
• Changes to DPDP rules expected soon

Was this newsletter forwarded to you? You can sign up for Tech3 here

After years of “will they, won’t they,” Tesla may finally enter the Indian market as early as April!

In just a month, Tesla may hit the Indian roads starting with imported EVs from its Berlin Gigafactory.

• Looks like the global EV major has locked in showroom locations in Mumbai’s BKC and Delhi’s Aerocity, setting the stage for a highly anticipated launch

Tesla has also posted a job advertisement for the role of PCB Design Engineer, Electronic Systems in Pune. This comes after the Elon Musk-led EV maker posted job openings for 13 roles in Delhi and Mumbai.

We hear that the first Tesla on Indian roads could be a sub $25,000 (under Rs 22 lakh) EV, a price point far more accessible than the brand’s premium global lineup.

• However, full-fledged local manufacturing isn’t on the cards yet

• Instead, Tesla is ramping up sourcing from Indian OEM suppliers, aiming to cross $1 billion in procurement by 2025

US President Donald Trump, however, has voiced concerns about potential unfairness to the US should a factory be established in India.

"If he (Elon Musk) built the factory in India, that's okay, but that's unfair to us. It's very unfair," Trump told Fox News in an interview.

Tesla is betting on import duty cuts. India recently reduced customs duty on high-end EVs from 110% to 70%, but Tesla wants further relaxations.

• Meanwhile, the Commerce Ministry is planning an inter-ministerial meeting on trade ties with the US, where auto tariffs will be a key discussion point

Musk’s India push comes amid rising trade tensions between the US and China, making India an attractive alternative for supply chain diversification.

Take a ride

First, they left for better opportunities. Now, they’re coming back to build them.

India’s push for indigenous foundational AI models is drawing Indian-origin researchers and engineers back home, additional secretary at MeitY and CEO of the IndiaAI Mission Abhishek Singh told us.

• The government has received 67 applications for its foundational model initiative, with some proposals coming from Indian researchers abroad forming companies and partnering within India

The push for homegrown AI got a major boost when the government allocated Rs 1,500 crore under the IndiaAI Mission to develop foundational models.

But what happens after India builds its own LLM?

• Singh believes the country will emerge as the world’s AI use-case capital, a view echoed by Nandan Nilekani and other tech leaders

This statement assumes importance as India was reluctant for the longest time to build a foundational model.

Despite gaps in tech prowess, India boasts a vast pool of highly skilled professionals.

• Singh said India’s growing AI expertise, as highlighted in the Stanford AI Index 2024 report, ranks the country as the global leader in AI skill penetration.

Experts have time and again warned that not having a foundational model could prove to be a blunder for India.

Dig deeper

"Very well prepared," "Felt like an internal company discussion," "They seemed very open and flexible" – these are just some of the positive reactions from attendees at the February 18th closed-door consultation on the draft rules of India’s data protection act.

• This marks a significant shift from previous consultations, which have often been described as standoffish and confusing

The Ministry of Electronics and Information Technology (MeitY) told the industry that they are open to introducing tweaks to the draft Digital Personal Data Protection (DPDP) Rules, especially on provisions pertaining to children's data and government's access to data.

• The meeting saw the presence of IT ministry MoS Jitin Prasada, secretary S Krishnan and others

For processing of children's data, the government was open to the usage of Aadhaar for verifying age of a guardian, multiple sources told us.

• Furthermore, the existing exemptions for certain scenarios and data fiduciaries processing children's data may be broadened

The government clarified that Rule 22, concerning its ability to request information from platforms, is not intended for surveillance. 

• Instead, it aims to streamline existing legal frameworks like the IT Act and the Bharatiya Nyaya Sanhita, we were told 

The government recently extended the submission deadline to March 7.

• Stakeholders have been asked to provide specific suggestions, including proposed wording for any clarifications they seek

Dig deeper

Elon Musk’s xAI just dropped its highly anticipated Grok-3 model, and it’s already flexing its muscles on AI benchmarks. 

• Powered by 200,000 GPUs, it outperforms models like GPT-4 and Gemini in math, science, and coding

But does Grok-3 live up to Musk’s ambitious claims of being the most powerful AI ever built?

Dig deeper

• Former OpenAI chief technology officer Mira Murati launched an AI startup called Thinking Machines Lab, with a team of about 30 leading researchers and engineers from competitors including OpenAI, Meta and Mistral.
  
  
• HP has announced a definitive agreement to acquire Humane's AI capabilities, including the CosmOS platform, select employees, and intellectual property (over 300 patents and patent applications).

The 2025 F1 season is almost here, but the rivalry isn't just on the track.  

• Who's winning the salary war: Verstappen or the newly-Ferrari-clad Hamilton? 

Check out the jaw-dropping salaries of F1’s elite 

Note: By subscribing to Tech3 you have already made the right choice. Top it up with a premium offering, the Moneycontrol Pro Panorama, newsletter that gives you a sharp take on macros, markets, business and finance. Sign up for Pro from this link to get this newsletter in your inbox and also a host of content enjoyed by over a million subscribers.