Unlocking Unrestricted Funding for Nonprofit Growth

Tuesday, Sep 2, 2025 3:21 pm ET1min read

The article suggests that the Indian government should treat nonprofits as startups to help them scale and impact more people. The government can unlock unrestricted funding for nonprofits, allowing them to experiment and iterate their way to success. The article proposes three new policy instruments to unlock infrastructural and organizational funding for nonprofits, including competitive unrestricted grants through a Fund of Funds (FoF) structure. This can help nonprofits like Project Deep and PRS to scale and make a greater impact.

Tesla's recent entry into the Indian market marks a significant milestone in its global expansion strategy. The company has opened its first showroom in Mumbai, offering the Model Y at a starting price of $70,000. This move comes amidst steep import tariffs—ranging from 70% to 110% for fully built electric vehicles—that have rendered Tesla's offerings inaccessible to all but the wealthiest consumers [1]. However, the Indian government's "Make in India" policy offers a potential lifeline, with 15% tariffs for companies committing $500 million in local investment [6]. Tesla, however, has yet to commit to this path, opting instead to gauge demand through imports.

The Indian EV market is nascent, with EVs accounting for just 4-5% of total vehicle sales in 2024, despite government targets of 30% by 2030 [5]. Domestic leaders like Tata Motors dominate 53% of the market with affordable models, challenging Tesla's premium positioning. Tesla's success in India could serve as a blueprint for its expansion into other high-cost regions, such as Southeast Asia or Africa, but it must address systemic challenges, including infrastructure development and competitive pressures from local players [4].

Tesla's Indian venture is not just a market entry but a high-stakes test of its ability to scale in emerging markets. The company's ability to navigate tariffs, infrastructure gaps, and local competition will determine whether it can replicate its U.S. and European success in markets where affordability and regulatory complexity are defining factors. For investors, the stakes are clear: India is not just a market but a proving ground for Tesla's vision of a global EV revolution.

References:
[1] Tesla's India Roadblock: High Tariffs & Policy Challenges, [https://www.datainsightsmarket.com/news/article/teslas-india-roadblock-high-tariffs-policy-challenges-78321]
[2] Tesla finally parks in India. But can it survive?, [https://www.aljazeera.com/news/2025/7/18/tesla-finally-parks-in-india-but-can-it-survive]
[3] India's Emerging Electric Vehicle Market, [https://business.cornell.edu/article/2025/7/indias-emerging-electric-vehicle-market/]
[4] Tesla's Indian Gamble: High Tariffs and the Road to Long-Term Dominance, [https://www.ainvest.com/news/tesla-indian-gamble-high-tariffs-road-long-term-dominance-2507/]
[5] India's EV ecosystem is still nascent, with EVs accounting for just 4–5% of total vehicle sales in 2024, despite government targets of 30% by 2030 [5].
[6] The Indian government’s “Make in India” initiative offers a potential lifeline. By reducing import duties to 15% for companies committing $500 million in local investment and establishing manufacturing within three years, the policy incentivizes foreign automakers to localize production [6].

Unlocking Unrestricted Funding for Nonprofit Growth

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