During his visit to the United States, Indian Prime Minister Narendra Modi met with SpaceX CEO Elon Musk, sparking significant interest regarding the nature of their discussions. Modi took to X to mention that the two leaders talked about various topics, including their shared interests in space, technology, mobility, and innovation.
Elon Musk was recently appointed by former President Donald Trump to lead a new initiative known as the U.S. Department of Government Efficiency, or DOGE. This added another layer of curiosity to the meeting, which took place while Modi was in the U.S. to engage with Trump. Musk’s involvement with his children during the meeting contrasted with Modi's delegation of top advisors, which included External Affairs Minister S. Jaishankar and National Security Adviser Ajit Doval.
At a subsequent joint press conference at the White House, Trump expressed uncertainty about the specifics of the meeting but speculated that Musk might be looking to expand business opportunities in India. He remarked, “I would imagine he met, possibly, because you know he’s running a company.” This assertion reflects the intertwining of business interests and diplomatic relations between the U.S. and India.
According to India’s foreign ministry, the discussions between Modi and Musk revolved around enhancing collaboration between American and Indian entities, focusing on themes such as innovation, space exploration, artificial intelligence, sustainable development, entrepreneurship, and efficient governance. These areas highlight the potential for strategic partnerships that could benefit both nations.
Musk has expressed a long-standing ambition to introduce his Starlink satellite internet service to India. However, this initiative has encountered numerous regulatory hurdles and challenges. In November 2022, India’s telecoms minister, Jyotiraditya Scindia, indicated that Starlink had yet to meet certain security standards, asserting that licenses for satellite communications would be granted only after compliance. The delays in the launch of Starlink services can also be attributed to opposition from domestic telecom companies such as Reliance Jio, owned by Mukesh Ambani.
Despite Musk's previous criticisms of India’s auctioning policy for satellite spectrum, the Indian government has since modified its stance, deciding to assign satellite spectrum instead of auctioning it. The competitive landscape for satellite broadband in India is significant, with six companies, led by Reliance Jio, currently dominating the market. However, if Musk aims to break into the Indian satellite broadband sector, the pricing of Starlink services could prove to be a significant hurdle, particularly given the context of India’s inexpensive mobile data services.
Furthermore, Tesla, Musk’s electric vehicle company, is also keen on entering the Indian automobile market, which ranks among the largest globally. However, the company has faced challenges related to high import tariffs on vehicles brought from abroad. The electric vehicle market in India remains in its infancy, comprising just over 2% of total car sales in the previous year. Nonetheless, the Indian government aims to boost this figure to 30% by 2030.
In response to the hurdles for foreign manufacturers, India has recently unveiled new policies that provide reduced tariffs on fully imported electric vehicles, granted that companies commit to initiating local manufacturing operations. This shift indicates a growing commitment from the Indian government to enhance the electric vehicle market and attract overseas investments.
