The Indian prime minister met Mr Musk on Tuesday during his three-day state visit to the US.
Tesla CEO Elon Musk has said the electric carmaker will be in India "as soon as humanly possible".
The Indian government said it had invited Mr Musk to explore investment opportunities in electric mobility and the commercial space sector.Mr Modi's meeting with Mr Musk, who also owns Twitter, came days after Twitter co-founderof threatening to shut down the platform for not complying with its orders to take down content from the website.
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