New Delhi, India – Amid Tesla Inc.’s recent layoffs and ahead of its quarterly earnings, CEO Elon Musk is scheduled to meet with Prime Minister Narendra Modi during the latter’s election campaign throughout India. The strategic timing of their meeting highlights the significance for both parties. Musk is eyeing India’s approval for SpaceX’s Starlink Inc. to operate in the country, while Modi aims to showcase foreign investment in India through potential Tesla projects and the presence of Tesla vehicles in Indian cities.
The meeting is expected to bring positive outcomes for both Musk and Modi. Musk’s decision to visit India during Modi’s campaign has garnered goodwill, with Starlink set to get government assurances from India for operating in the country by the third quarter of this year. This development will help Starlink compete with local rivals that acquired licenses for satellite-based internet services in India last year.
In addition to Starlink’s prospects, a substantial investment by Tesla in India’s electric vehicle market could provide a boost to Musk’s company amid slowing EV demand worldwide. Tesla’s previous attempts to enter India were hindered by high import taxes, but recent tax reductions for foreign EV manufacturers pledging significant investments in local production facilities have paved the way for Tesla’s potential entry into the Indian market.
Despite facing challenges in China, where Starlink services are not yet approved, winning over India, with its massive population, is crucial for SpaceX. Aligning with India’s digital focus, Starlink’s satellite broadband services could enhance the delivery of government programs and solidify security partnerships between the US and India in countering China’s influence in the region.
While Musk’s space endeavors in India have encountered obstacles in the past, recent regulatory changes, such as easing foreign direct investment rules for the space sector and eliminating spectrum allocation auctions for satellite internet services, indicate a more favorable environment for companies like Starlink in India. With over 5,600 active satellites in low-Earth orbit and plans for significant expansion, Starlink has a competitive edge in the global connectivity market.
Overall, the meeting between Musk and Modi holds significant implications for both Tesla and India’s tech and investment landscape. Musk’s visit to India during Modi’s hectic election campaign underscores the potential for increased foreign investment and technological advancements in India, reflecting the country’s growing allure for global corporations looking to capitalize on its expanding domestic market.