Tesla Cars, Starlink: Why Is Elon Musk Interested In India?

Prime Minister Narendra Modi met with SpaceX CEO Elon Musk on Thursday during his visit to the United States, where he also held discussions with President Donald Trump. While the specifics of their conversation remain undisclosed, Modi later shared on X (formerly Twitter) that they “discussed various issues, including those he is passionate about such as space, mobility, technology, and innovation.”

Trump Uncertain About the Meeting’s Purpose

The meeting marked the second high-profile interaction between the two, following their previous discussion in New York in 2023. At that time, Musk had expressed optimism about Tesla’s entry into the Indian market, stating, “I am confident that Tesla will be in India … as soon as humanly possible.”

Modi and Musk’s meeting took place in Washington, where Musk was accompanied by his three young children, while Modi was flanked by top Indian officials, including External Affairs Minister S. Jaishankar and National Security Adviser Ajit Doval.

Later, at a joint press conference with Modi at the White House, Trump admitted he was unsure about the purpose of Musk’s meeting with the Indian leader but speculated that it could be business-related.

“I would imagine he met, possibly, because you know he’s running a company,” Trump told reporters.

Elon Musk Has Starlink Expansion Plans in India

Musk, who has previously described himself as a “fan of Modi,” has long been interested in expanding Starlink, his satellite internet service, into the Indian market. However, regulatory hurdles, security concerns, and resistance from major domestic telecom players like Mukesh Ambani’s Reliance Jio have delayed its entry.

In November 2024, India’s telecom minister, Jyotiraditya Scindia, stated that Starlink had yet to comply with security norms and that a license for satellite communication services would only be granted once all regulatory requirements were met.

Musk has been vocal about his opposition to India’s previous policy of auctioning spectrum for satellite services, arguing that it could stifle competition. The Indian government later revised this approach, opting to assign satellite spectrum instead of auctioning it.

Elon Musk Eyeing India’s Untapped Satellite Broadband Market

India’s satellite broadband market remains highly competitive, with at least six companies vying for dominance—Reliance Jio being the leader. Apart from regulatory challenges, Starlink has faced opposition from domestic telecom firms, with Reliance Jio arguing last year that auctioning satellite spectrum was necessary to ensure fair competition.

Currently, Starlink operates approximately 6,900 satellites that provide low-latency broadband to around 4.6 million people globally. However, entering India’s market could be challenging due to Starlink’s high pricing.

Mobile data in India is among the cheapest in the world, with Reliance Jio having once offered free data as part of its expansion strategy. Despite this, nearly 40% of India’s 1.4 billion population still lacks internet access, particularly in remote and mountainous regions where affordable satellite broadband could bridge the gap.

Tesla’s India Entry Still in Limbo

Musk’s electric vehicle company, Tesla, has also struggled to enter the Indian market—one of the largest automobile markets globally—due to high import duties on foreign-manufactured vehicles.

India’s electric vehicle industry is still in its early stages, accounting for just over 2% of total car sales last year. However, the Indian government has set ambitious targets, aiming to increase electric vehicle penetration to 30% by 2030.

To incentivize foreign carmakers, India recently announced a new policy offering concessional tariffs on fully imported electric vehicles for companies that commit to local manufacturing.

Also Read: ‘I Don’t Know’: Trump Unclear Why Elon Musk Met PM Narendra Modi