Can Elon Musk’s New Political Influence Help Him Make a Breakthrough in India?

IIt's easy to believe that Elon Musk's reach is unlimited. But the richest people in the world are given a carte blanche to control the space satellite empire, own one of the biggest social media platforms, produce the world's bestselling electric cars, and gush the US government from Donald Trump, but there is a market where masks have not yet cracked properly.

Now, due to his new impact on the Trump administration and global geopolitics, Musk's entrance into the Indian market could be smoother and faster than expected, both on Tesla's electric vehicles and Starlink satellite internet.

When India's Prime Minister Narendra Modi traveled to Washington earlier this month to meet Trump, he sat down with Musk personally. There, according to the Indian government, the pair “discussed about strengthening collaboration with Indian and US organizations in innovation, space exploration, artificial intelligence and sustainable development.”

Trump said it more frankly: “I'm assuming him.” [Musk] I want to do business in India. ”

To date, India's 110% tariffs on imported electric vehicles have prevented Tesla from entering the fast-growing Indian market. However, Musk last year vowed that Tesla would be in India “as soon as possible as humanly possible.” And after his recent encounter with Modi, he appears to be keen to make it a reality.

Tesla has already started advertising for work in Mumbai and Delhi and has signed a lease to open its first showroom in Mumbai. If Tesla promises to invest $500 million in the factory that manufactures the car within three years, it could also take advantage of the new Indian government scheme, which will reduce import duties on electric vehicles to 15%. However, the tax credit only applies to the first 8,000 vehicles. This could push Tesla back.

The Tesla plant will benefit India, a country that is desperate for foreign investment and job creation, particularly in manufacturing. Nevertheless, Musk holds a checkered record of his commitment to investing in India. Last year, he left the Modi government's involvement after coming up with a high-profile plan to travel to India, hanging the possibility of a $3 billion investment to build a Tesla plant in the country, but cancelled the trip at the last minute. Instead, he rivaled China, another huge market that Musk would like to exploit in the same way to cut down on large transactions.

Tesla also faces tough competition with Indian manufacturers. Indian manufacturers manufacture and sell popular electric SUVs at about a quarter of the starting price of £35,000, which is far above the budget of most Indian families, when Tesla costs. (Tesla car sales have also plummeted worldwide, falling 45% in Europe in January.)

Trump also seemed less enthusiastic about Musk's ambition to start making Teslas in India. “If he builds a factory in India now, that's fine, but that's unfair to us. Trump told Fox News.

Another more advantageous finger in the Indian mask pie could be SpareLink's Starlink. Globally, masks already have the dominant lead on the satellite internet. There are more than half of all satellites in the sky.

Since 2021 he has been adamant about bringing Starlink into India. According to Deloitte, India's satellite internet currently has a small appetite, but is expected to grow to a $1.9 billion (£150 million) market by 2030, and is considered an important entry point for India's thriving telecom industry.

Earlier this year, after Trump took office, where Musk became very well-known, Indian Communications Minister confirmed that Starlink was in the process of seeking the security permits necessary to operate in India.

Jyotiraditya Scindia said: “If you check all boxes, you'll see the license. In their case [Starlink] Do it, we will be very happy. ”

However, in India, communications, including satellite internet, are one of the most strictly regulated and controlled industries in India, putting a huge obstacle in the way that foreign companies such as masks are allowed to have security permits.

In particular, Musk's close ties and business interests in China, and the use of Starlink in the Ukrainian War, was viewed as an insurmountable cybersecurity issue, SpareLink's ability to control access to satellite Internet from abroad. Government Undermody in India routinely orders internet providers to block important online content and uses internet blackout as a means of information management.

These fears could be raised after sources in Myanmar and neighboring India's Manipur state told the Guardian earlier this year that Starlink was already being used by the state's militant groups to avoid the regular internet closures imposed after the outbreak of ethnic violence.

A recent report from an Indian think tank warned that Starlink is a “wolf in sheep's clothing” and cited use by the US intelligence reporting agency and the military, and that it could be used to undermine India's safety.

However, some believe that after Trump's election, the Indian government may want to take those concerns to the side. “I think India had doubts about giving security clearance to Musk's Starlink before the US election results began,” said Nikhil Pahwa, founder of Indian tech news platform Medianama.

“One of the things we rely on India is our control of internet access and control over our operators. But now that Musk is part of the US government, his leverage in India has certainly increased, and it is possible that Starlink Clearing Security approval has improved dramatically.

Pahwa said the Indian government's decision on Starlink is “as many political decisions as it is a security decision.”

What's known as “Starlink diplomacy” — opening the country to mask satellites in an obvious attempt to satisfy the Trump administration — was already evident in neighbouring Bangladesh, where the country's interim leader, Mohammed Yunus, suddenly expanded an invitation to launch Starlink within 90 days.

Even before Trump was re-elected, the Indian government had already piloted Starlink's ambitions in favour of its ambitions. In October, the government announced that broadband satellite spectra would be allocated administratively rather than auctions. “We will do our best to serve the people of India at Starlink,” Musk responded with an X.

This decision means Starlink has a much better opportunity to compete with Indian telecom companies in the fight to manage the country's satellite internet market. He has encountered rage from some of the country's biggest operators, including Jio, who also has vast ambitions in the satellite internet space, and has since lobbyed the government to reverse its auction decisions.

One of the main advantages of satellite internet is that it can provide internet access even in the most remote areas. However, in India, most people living in rural areas are unlikely to be able to afford it unless the subsidies are large.

Technology analyst Prasanto K Roy said that if Starlink cuts a significant amount of what he did in Africa, it could lead to a price war with India's biggest carrier if he repeats what Starlink did in the US at a price of around $10 compared to $120. A successful mobile internet, Jio came from undercutting all competitors to make Indian mobile internet the cheapest in the world, but could follow.

“Starlink isn't as easy in India like other markets, so there's a very strong competition here, so it's going to be difficult to get monopoly even at low prices,” says Roy.

He added: “People using Starlink will obviously be a very small niche at the top of the socioeconomic pyramid. But once he gets the hold, that's something that masks can really be utilized in India.”