PM Modi, Elon Musk Reconnect to Boost Tech Ties; Fast-Track Tesla, Starlink India Plans

Prime Minister Narendra Modi recently dialed up the CEO of Tesla and SpaceX, Elon Musk. Modi brought back the main subjects the two had discussed earlier this year in a meeting in Washington DC. The conversation centered largely around the idea of moving US-India collaboration forward, in particular, in sectors that are very much on the cutting edge these days: electric mobility, renewable energy, and space. 

India is fully committed to partnership of the kind that pushes technological frontiers. That was the message Prime Minister Narendra Modi delivered to Elon Musk during the video call. The call's timing was significant, since Musk's companies are making visible moves toward entering the Indian market.

Tesla’s Manufacturing Prospects

The ongoing talks over several months with Tesla about establishing a U.S. manufacturing base for electric vehicles in India have reportedly progressed to the stage where the company is exploring options for local production. The firm’s interest is likely driven not only by the India EV market’s growth but also by the prospect of addressing a regional Asian market that could easily dwarf the U.S. or Europe in terms of scale. An assembly facility in India would be in closer proximity to both potential markets.

Even though concrete details are still secret, the government's electric vehicle promulgation and production promotion policies, under such schemes as FAME II and PLI, have made India a very inviting place for Tesla to setup shop.

Starlink’s Satellite Internet and Regulatory Hurdles

The dialogue between the Prime Minister and Musk also coincides with a critical moment for Starlink, the satellite internet arm of SpaceX. Starlink is allied with Reliance Jio and Bharti Airtel, two major telecom companies, to provide broadband service to underserved regions all over India. But the service can’t be turned on yet for most of those areas, because the space-based internet has not received security clearance from the government.

Although services supported by the Bharti Group (via Eutelsat OneWeb) and Jio Satellite Communications have been granted licenses, they haven't begun operating because spectrum policies aren't set yet. Starlink, with its 6,750-plus satellites, could disrupt this space.

Diplomacy, Books, and Bilateral Hopes

This renewed interaction emphasizes a larger global political backdrop. India and the US are moving toward the conclusion of the first phase of their bilateral trade deal, due this fall. Working together on technology is central to the negotiations, which reflect India’s strategy of using international partnerships to provide dual economic and strategic benefits.

A personal gesture during a previous meeting saw PM Modi gifting Musk's children Indian literary classics. Works by Rabindranath Tagore and RK Narayan were among the literary selections the PM made for Musk's family. The exchange was one of diplomatic goodwill.