NEW DELHI — During his recent trip to the United States, Indian Prime Minister Narendra Modi met with Elon Musk, the CEO of SpaceX. The details surrounding their conversation remain somewhat ambiguous, but Modi took to social media platform X to share that they engaged in discussions covering a variety of topics, including space endeavors, mobility, technological advancements, and innovative practices.
Musk has recently been appointed by former President Trump to lead a newly created U.S. Department of Government Efficiency, also known as DOGE. This meeting between the two figures follows their previous encounter in New York earlier in 2023, where Musk expressed optimism about Tesla’s potential entry into the Indian market, stating his confidence that it would happen “as soon as humanly possible.”
While Trump was not entirely clear on the purpose of the meeting between Modi and Musk, he suggested that it might relate to Musk’s interests in conducting business in India. During a press conference at the White House with Modi present, Trump remarked, “I would imagine he met, possibly, because you know he’s running a company.” The Indian foreign ministry later issued a statement saying that the discussions centered on enhancing cooperation between Indian and U.S. agencies in areas such as innovation, space exploration, artificial intelligence, and sustainable development, along with entrepreneurship and effective governance.
Musk’s aspirations for Starlink in India have long been a point of interest. Previously expressing admiration for Modi, Musk has been eager to introduce his Starlink satellite internet service to the Indian market. However, the rollout has encountered delays attributed to regulatory challenges and security concerns, as well as pushback from major local telecom players, particularly Reliance Jio led by Mukesh Ambani. Last November, India’s telecom minister, Jyotiraditya Scindia, indicated that Starlink was yet to meet necessary security regulations, meaning that a license for satellite communication services would only be granted once Starlink adhered to all guidelines.
Musk has also openly criticized India’s approach to assigning satellite spectrum via auction processes, leading the government to adjust its policy to assign spectrum instead. The competition in India’s satellite broadband market is intense, with at least six companies, including Reliance Jio, striving for market share. Beyond regulatory barriers, Musk’s Starlink has faced challenges from Reliance Jio, which argued for auctioning spectrum as a means to maintain equitable competition in the field.
Currently, Musk’s Starlink operates with approximately 6,900 satellites in orbit, providing low-latency internet access to about 4.6 million users globally. However, the high cost of Starlink’s services may impede its success in India, where mobile data prices are among the lowest in the world. Historically, Jio has even provided free data through its mobile plans. Despite this, a significant portion—around 40%—of India’s population, exceeding 1.4 billion, still lacks internet access. Affordable satellite broadband is essential for addressing this digital divide, particularly in remote and elevated regions.
In addition to Starlink, Musk’s electric vehicle venture, Tesla, is yet to penetrate the Indian automobile market, known as one of the largest globally. The company faces obstacles primarily due to steep import duties on vehicles entering India. Moreover, the electric vehicle sector in India is still in its infancy, representing just over 2% of total car sales last year. The Indian government is ambitious in its plans, aiming to elevate the electric vehicle market share to 30% by 2030. To support this transition, the country has introduced a new policy that offers reduced tariffs on fully imported electric vehicles from foreign manufacturers that commit to establishing local production facilities.
