Elon Musk Meets Modi: What Does Musk Want from India?

Highlights:

• Musk wants to launch Starlink in India but faces regulatory hurdles.
• Tesla’s India entry remains uncertain due to high import duties.
• Musk & Modi discussed collaboration in AI, space, and sustainable development.
• India’s satellite broadband market is competitive, dominated by Reliance Jio.
• New EV policy may encourage Tesla to set up a manufacturing plant in India.

Why Did Elon Musk Meet Narendra Modi?

Indian Prime Minister Narendra Modi met Elon Musk during his U.S. visit, where he also met President Donald Trump. While exact details remain unclear, the discussions revolved around:

• Starlink’s entry into India
• Tesla’s India plans & high import duties
• Strengthening India-U.S. collaboration in AI & space tech
• Boosting innovation, mobility & sustainable development

Trump’s reaction? At a press conference with Modi, Trump admitted he wasn’t sure why Musk met Modi but guessed it was about “doing business in India.”

Musk’s Biggest Bet: Bringing Starlink to India

Musk wants to bring Starlink satellite internet to India, but faces strong regulatory hurdles & resistance from Reliance Jio.

Why India is Key for Starlink:

• 40% of India’s 1.4 billion people still lack internet access.
• Huge demand for rural broadband in remote & mountainous areas.
• Starlink offers low-latency internet via 6,900+ active satellites.

Challenges for Starlink in India:

Regulatory Hurdles: India’s telecom ministry hasn’t approved Starlink due to security concerns.
Reliance Jio’s Opposition: Jio argues satellite spectrum should be auctioned, while Musk wants direct allocation.
High Pricing Issue: India has cheapest mobile data rates globally—Starlink’s premium pricing may struggle.

India has now agreed to assign satellite spectrum instead of auctioning it, which could pave the way for Starlink’s approval.

Tesla’s Struggles: High Tariffs Blocking India Entry

Musk’s Tesla has been eyeing India for years, but high import duties remain a big challenge.

India imposes up to 100% import tax on fully built foreign cars, making Tesla models too expensive.
EV market is still small (only 2% of total car sales in 2023).

New Opportunity: India’s EV Policy (2024)

India recently announced a new policy offering lower tariffs on EVs if foreign carmakers commit to local manufacturing.

Musk previously said Tesla will be in India “as soon as humanly possible”—this policy could accelerate Tesla’s India entry.

Space, AI & Innovation: Strengthening US-India Ties

Apart from Starlink & Tesla, Musk and Modi discussed expanding India-U.S. collaboration in:

• AI & Space Exploration – Potential partnerships with ISRO & private Indian space firms.
• Sustainable Development – Advancing clean energy & EV technology.
• Entrepreneurship & Governance – Promoting innovation & digital infrastructure.

Also Read: Trump-Modi Talks: Fighter Jets, Trade Wars, & “Making India Great Again

What’s Next for Musk & India?

Will India approve Starlink? The government has softened its stance, but Reliance Jio’s opposition remains a hurdle.
Will Tesla finally enter India? The new EV policy could be a game-changer if Tesla commits to local production.
Will India partner with SpaceX? Modi’s push for AI & space tech aligns with Musk’s long-term vision.

Final Verdict: Musk Wants India, But Does India Want Musk?

Elon Musk sees massive opportunities in India, but regulatory & market challenges remain. With Modi’s push for innovation & self-reliance, Musk may have to adapt his business strategy before India fully opens its doors to him.