Elon Musk Meets Indian PM Modi in US: What Does He Seek from India?

Exploring the possibilities of business expansion in India for SpaceX, Tesla, and Starlink / AP

During Indian Prime Minister Narendra Modi's visit to the United States, he met with SpaceX CEO Elon Musk, sparking curiosity about what the billionaire entrepreneur seeks from India. The exact nature of their discussions remains unclear, but Modi mentioned in a post on X that their conversation spanned various topics, including space exploration, technology, innovation, and mobility. The meeting coincides with Musk’s recent appointment by President Donald Trump to lead the U.S. Department of Government Efficiency (DOGE), further highlighting the increasing influence Musk holds within both the tech and governmental spheres.

Musk and Modi previously met in 2023 in New York, where the CEO expressed his eagerness to launch Tesla in India "as soon as humanly possible." The two influential figures reconvened on Thursday, with Modi accompanied by key officials such as External Affairs Minister S. Jaishankar and National Security Adviser Ajit Doval, while Musk brought his three children along for the meeting. At a subsequent press conference, President Trump speculated that Musk’s meeting with Modi was likely motivated by a desire to expand business opportunities in India.

India’s foreign ministry issued a statement after the meeting, revealing that Modi and Musk discussed strengthening bilateral cooperation in sectors like space exploration, artificial intelligence, sustainable development, and entrepreneurship. The two leaders also touched on governance issues, signaling a potential collaboration between the U.S. and Indian entities in driving innovation and advancing technological solutions for both countries.

Musk’s Vision for SpaceX, Starlink, and Tesla in India

Musk has expressed a long-standing interest in introducing his ventures, including Starlink satellite internet and Tesla electric vehicles, to the Indian market. One of Musk’s main goals is to provide India with the high-speed internet access that Starlink offers. However, the service’s entry has faced significant delays due to India’s strict regulatory requirements and resistance from major telecom providers such as Reliance Jio, owned by Indian billionaire Mukesh Ambani.

In 2022, India’s telecom minister Jyotiraditya Scindia confirmed that Starlink was still in the process of meeting India’s security norms and would not receive a license to operate until those conditions were fulfilled. Musk has been vocal in criticizing India’s initial satellite spectrum auctioning policy, which was subsequently revised by the government to allocate satellite spectrum directly to companies like Starlink. Despite this change, Musk’s Starlink still faces opposition from domestic telecom giants like Reliance Jio, which argues that the auctioning process ensures fairness in competition.

Currently, Starlink boasts a network of over 6,900 satellites in orbit, providing internet access to millions of people worldwide. However, the high costs associated with Starlink’s broadband service may pose challenges in a market like India, where mobile data rates are among the cheapest globally. Moreover, with over 40% of India’s population still lacking internet access, particularly in remote and mountainous areas, there is a significant opportunity for affordable satellite broadband services to bridge the connectivity gap. Musk's venture into India could potentially offer a solution, provided the service is made affordable for the local population.

Tesla’s Struggles to Enter the Indian Market

In addition to Starlink, Musk’s Tesla has been eyeing the Indian market, one of the largest automobile markets globally, for years. However, the electric vehicle giant has faced significant roadblocks, primarily due to India’s high import duties on vehicles. The high costs of importing fully-built electric vehicles (EVs) have deterred Tesla from launching its cars in the country.

India’s electric vehicle market is still in its infancy, representing just over 2% of the total car sales in the country. However, the Indian government is working to increase the share of EVs to 30% by 2030, with various initiatives and policies aimed at promoting the adoption of electric vehicles. The recent announcement of a policy that offers concessional tariffs for fully imported EVs from foreign manufacturers that commit to local production is a step in the right direction for Tesla. This policy could pave the way for Tesla to enter the market by setting up local manufacturing facilities, thus reducing the impact of import duties on its pricing strategy.

India’s EV market is expected to grow rapidly in the coming years, with several homegrown and international companies racing to introduce affordable EV models for Indian consumers. Tesla’s entry into India could not only provide a boost to the local EV market but also help the government achieve its ambitious goals of reducing carbon emissions and boosting the adoption of sustainable transportation solutions.

In conclusion, the meeting between Modi and Musk highlighted the ongoing discussions surrounding business expansion opportunities in India, particularly for Tesla, Starlink, and other Musk-led ventures. The future of these companies in India will depend largely on the resolution of regulatory hurdles, market competition, and the ability to adapt to the unique demands of the Indian market.