India Strengthens Ties with Tesla and SpaceX Through Elon Musk

Prime Minister Narendra Modi engaged in a conversation with Tesla and SpaceX CEO Elon Musk on Thursday, focusing on India’s commitment to enhancing its technological and innovative relationships with the United States. This discussion comes on the heels of a series of recent interactions between Indian officials and top executives from Musk’s companies, including a notable meeting earlier in the week involving a Starlink team and Union Commerce Minister Piyush Goyal.

“Prime Minister Modi discussed various topics including those addressed during their meeting in Washington DC earlier this year,” noted a spokesperson. “The discussion highlighted the significant potential for collaboration in technology and innovation. India is firmly dedicated to strengthening its partnership with the US in these vital areas.”

The timing of this communication is particularly relevant. India and the US are currently involved in high-level trade discussions, with a senior Indian delegation planning to travel to Washington next week for further negotiations aimed at improving market access and enhancing bilateral investments. Meanwhile, New Delhi is enthusiastic about attracting strategic investments in key sectors such as artificial intelligence, electric vehicles, and satellite internet.

Earlier this week, Goyal welcomed Starlink executives, including Vice President Chad Gibbs and Senior Director Ryan Goodnight, in New Delhi. Their discussions explored the Starlink technology platform, ongoing global deployments, and the company’s intentions to expand its operations within India.

“Met with a delegation from Starlink, including Vice President Chad Gibbs and Senior Director Ryan Goodnight. The talks covered Starlink’s advanced technology platform, current partnerships, and future investment aspirations in India,” Goyal shared.

Starlink, the satellite internet division of SpaceX, encountered regulatory challenges in India previously. In 2021, the company had to halt pre-orders and issue refunds to Indian customers after being instructed by the government to cease operations until the needed licenses were obtained. Starlink had allegedly accepted bookings and taken payments without the necessary approval from the Department of Telecommunications.

Musk’s expected visit to India, originally set for April 2023, was abruptly cancelled, reportedly due to significant Tesla obligations; however, it was later indicated that unresolved policy issues also played a role. Musk’s last substantial engagement with Indian officials occurred during PM Modi’s official visit to Washington in June 2024, where Musk expressed hope for India’s future and described Modi as “very sincere and committed.”

Since then, Musk’s interest in exploring India’s digital and industrial environment has grown, evident through Tesla’s potential electric vehicle manufacturing plans and Starlink’s desire to provide satellite internet services to remote and underserved areas.

Thursday’s communication suggests that high-level interactions are back on course. With India striving to establish itself as a global centre for innovation and manufacturing, and Musk’s enterprises seeking new opportunities and regulatory clarity, the coming months could be crucial for translating discussions into actionable projects.