Prime Minister Narendra Modi and tech billionaire Elon Musk spoke about the growing partnership between India and the United States in technology and innovation. The two leaders had met earlier this year in Washington and continued their discussion, focusing on Musk’s companies like Tesla and Starlink investing in India.
PM Modi said there is “immense potential” for cooperation between India and the US in these fields. He emphasized that India is committed to strengthening its partnership with the US in technology and innovation. He shared this update on social media, including X (formerly Twitter), which is owned by Musk.
Timing of the Discussion
The conversation between PM Modi and Musk comes during a time of tension between the US and China. Both countries have imposed high tariffs on each other’s goods, hurting industries and especially tech companies. The US and China are the world’s largest manufacturers, and many of America’s top tech firms rely on China for production. These tariffs are causing tech companies to look for other countries to manufacture their products.
India, with its established tech and auto manufacturing sectors, is now seen as a favorable alternative for these companies. India has a lower 26% tariff compared to the higher tariffs imposed by the US and China.
Tesla’s Interest in India
Tesla has not yet officially entered the Indian market, but after the meeting between PM Modi and Elon Musk earlier this year, Tesla started hiring for roles in India. Although Tesla initially delayed its entry into the Indian market due to high import duties, the Indian government reduced import duties on electric vehicles (EVs) last year, making it easier for companies like Tesla to enter the market.
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In India’s 2025 budget, customs duties on expensive cars were reduced, which was seen as an invitation for companies like Tesla to set up shop in India. However, the trade war between the US and China, triggered by President Trump’s tariffs, has created uncertainty for companies like Tesla, who have relied on China for manufacturing.
Starlink’s Plans in India
Elon Musk is also hoping to bring his satellite internet service, Starlink, to India. India is one of the largest markets for internet services, especially for social media and fintech. However, Starlink has faced several challenges in entering India, including security concerns and opposition from domestic telecom companies like Reliance Jio.
India’s telecom minister, Jyotiraditya Scindia, stated last year that Starlink hadn’t met India’s security regulations, and the company would need to comply before receiving a license. Musk has criticized India’s policy of auctioning spectrum for satellite services, but the government later decided to assign the spectrum instead of auctioning it.
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India’s internet market is very competitive, with major companies like Reliance Jio and Airtel leading the market. While Starlink has thousands of satellites providing internet around the world, the high cost of Starlink’s service could be a problem in India, where mobile data is among the cheapest in the world.
In summary, both PM Modi and Musk see great potential for cooperation between India and the US, particularly in technology, but challenges remain for Musk’s companies like Tesla and Starlink in India.
