BENGALURU: Billionaire Elon Musk's Tesla Inc will set up an electric-car manufacturing unit in the southern Indian state of Karnataka, according to a government document seen by Reuters on Saturday.

"The US firm Tesla will be opening an electric car manufacturing unit in Karnataka," the state government said in a brief statement.

The statement was part of a broader document outlining the highlights of India's budget to its people in the local language of Kannada.

Last month, the electric carmaker incorporated Tesla Motors India and Energy Private Limited with its registered office in the city of Bengaluru in Karnataka, a hub for global technology companies.

State Chief Minister B.S. Yediyurappa had then said in a tweet, which was subsequently deleted, that Tesla would start its operations in India with an R&D unit in Bengaluru.