Starlink’s application for offering satcom services in India had been held up for the company’s inability to comply with mandatory ownership disclosure norms.
IMAGE: Prime Minister Narendra Modi and Tesla CEO Elon Musk during their meeting at Blair House in Washington, DC, February 13, 2025. Photograph: ANI Photo
Prime Minister Narendra Modi on Friday, April 18, 2025, had a telephonic conversation with US tech billionaire Elon Musk on a range of issues, including technology, fuelling expectations that Tesla and Starlink could possibly enter the Indian market soon.
Musk, a member of US President Donald Trump’s core team, has been engaged with India to start a retail operation for Tesla and also to set up a manufacturing plant for the electric car in the country.
In addition, Starlink, the satellite communications business of SpaceX — steered by Musk — is awaiting government approval to start its service in India.
The conversation between Modi and Musk comes against the backdrop of Trump administration’s reciprocal tariffs — now on hold till July 10.
The US and India are working on a bilateral trade agreement (BTA) to navigate the tariff situation.
‘The PM had a constructive conversation today with Mr Elon Musk, delving into a range of issues of mutual interest.
‘The discussion revisited topics covered during their meeting in Washington DC earlier this year, underscoring the shared vision for technological advancement,’ the prime minister’s office said in a statement on Friday.
In a post on social media platform X, yet another of Musk’s companies, Modi said India remains committed to advancing its partnerships with the US in technology and innovation.
While his satellite internet company Starlink has already announced partnerships with telecom operators Bharti Airtel and Reliance Jio to distribute its equipment and services in India, Musk’s automotive and clean energy company Tesla has also been revving up to hit Indian streets but has been blocked by what it says are high import duties.
Of the two, Starlink seems to have received a stronger signal from the government so far.
Sources said the company could get an approval for India entry soon.
In March, Airtel and Jio had announced their customers would get access to Starlink’s portfolio of satellite communication solutions.
Starlink provides satcom services in over 100 countries through a constellation of over 7,000 Low Earth orbit (LEO) satellites operated by SpaceX, the American spacecraft manufacturer, and launch service provider also owned by Musk.
Earlier this week, top Starlink executives including India market access director Parnil Urdhwareshe, and vice president Chad Gibbs called upon Commerce and Industry Minister Piyush Goyal in New Delhi.
Starlink’s application for offering satcom services in India had been held up for the company’s inability to comply with mandatory ownership disclosure norms overseen by the Department for Promotion of Industry and Internal Trade under Goyal, among other issues.
Starlink’s application for a global mobile personal communication by satellite services licence has remained under processing since November 2022.
The licence has already been granted by the Department of Telecommunications to Airtel-backed Eutelsat OneWeb and Reliance Jio’s satellite arm Jio Space Limited.
The application has also dragged on due to the lengthy list of exemptions from certain provisions that Starlink has sought citing technical limitations, to operate in India.
According to GMPCS rules, the licensee must use satellites only for authorised services over Indian territory, excluding activities that could compromise national sovereignty and security, such as surveillance or electronic warfare, a regulation which has been repeatedly cited by India’s strategic establishment.
Additionally, Starlink had also clashed with the government on rules that licensees must provide call data records to security agencies upon request.
Tesla reaching India
Though Tesla has not officially ventured into the Indian market yet, shortly after a meeting between Modi and Musk in Washington, DC in February, Tesla Inc had commenced the recruitment process in India.
The EV manufacturer focusing on renewable energy had opened 13 positions on LinkedIn for various roles, including back-end jobs and customer-facing roles.
In the past, Tesla and India have had an uncertain relationship with the brand delaying its entry into the Indian passenger vehicle market.
The major concern for the EV manufacturer has been the high import duties.
However, the Indian government addressed the concern last March by announcing the scheme for Manufacturing Electric Passenger Vehicles in India.
Though the guidelines are yet to be notified, the scheme includes reductions in the import duty on EVs.
However, it says global EV makers are required to set up local manufacturing facilities with a minimum investment of $500 million.
In the 2025 Union Budget, India reduced basic customs duty on high-end cars with a price tag of more than $40,000 from 110 per cent to 70 per cent.
This was seen as an invitation for manufacturers like Tesla.
Earlier this month, when the Trump administration imposed 25 per cent tariff on passenger vehicles (sedans, SUVs, crossovers, minivans, cargo vans) and light trucks, as well as key automobile parts (engines, transmissions, powertrain parts, and electrical components), with processes to expand tariffs on additional parts if necessary, a senior government official told Business Standard that India is open to propose a 0- to 1 per cent tariff on the import of automobile parts, if the US reduces its duty on the same.
Sources said the scope of the latest Modi-Musk talks may have also included bilateral affairs.
Musk is currently one of the most influential persons in the Donald Trump administration.
He spearheads the Department of Government Efficiency (DOGE) aimed at cutting government expenditure and reducing federal workforce.
Feature Presentation: Ashish Narsale/Rediff.com
