New Delhi, April 19, 2025 – In a strategic phone call amid escalating trade tensions between the United States and China, Prime Minister Narendra Modi and Tesla CEO Elon Musk discussed strengthening US-India cooperation in technology and innovation, with special emphasis on Tesla and Starlink’s India entry.
The timing of the conversation is critical, as global tech giants seek alternatives to China’s manufacturing ecosystem following a full-blown tariff war between the world’s top two economies.
Top 10 Key Developments from the PM Modi–Elon Musk Conversation:
- Focus on Tech & Innovation: PM Modi stated on social media that he spoke with Elon Musk about enhancing collaboration between India and the United States in the domains of technology, innovation, and industrial investment.
- Backdrop of US-China Trade War: The conversation comes during a peak in the US-China trade war, with the US slapping 245% tariffs on Chinese exports, and China retaliating with 125% additional tariffs on top of the existing 67% on US imports.
- India as an Alternative Manufacturing Hub: With China no longer seen as a stable production base, India’s established automotive and technology manufacturing sectors are increasingly becoming attractive to US firms looking to de-risk operations.
- Tesla’s Hiring in India Begins: Following Modi and Musk’s meeting in Washington earlier this year, Tesla posted 13 job openings in India, signaling its revived interest in entering the Indian EV market.
- Import Duties Slashed for EV Makers: India’s 2025 Union Budget slashed customs duty on high-end EVs (above $40,000) from 110% to 70%, offering a more favorable environment for global EV giants like Tesla—provided they commit at least $500 million in local manufacturing.
- Starlink’s Regulatory Roadblocks in India: Elon Musk’s Starlink project eyes entry into India’s broadband market. However, regulatory hurdles and resistance from domestic giants like Reliance Jio have delayed its rollout.
- Policy Change on Satellite Spectrum: Musk previously criticized India’s auction-based spectrum policy. The Indian government has since amended the policy to assign rather than auction spectrum for satellite internet services—a move seen as Starlink-friendly.
- India’s Data Cost Challenge: While Starlink’s satellite internet promises high-speed connectivity, pricing may pose a challenge in India’s ultra-price-sensitive telecom market, where data rates are among the lowest in the world.
- Modi-Musk Chemistry Grows: Elon Musk has frequently described himself as a “big fan of PM Modi,” and their frequent engagement underscores growing confidence in India as a long-term partner for Musk’s ventures.
- India-US Tech Alliance in the Making: As geopolitical fault lines shift, India and the United States are positioning themselves to deepen tech sector alliances, with Modi-Musk talks symbolizing a larger economic and strategic pivot in a multipolar global order.
With Tesla’s India push back on the table and Starlink’s prospects growing, India may soon become a key player in Elon Musk’s global ambitions.
For more news updates, stay tuned in to Globalfinserve.com.