Modi and Musk Meeting- Prime Minister Narendra Modi is set to meet Elon Musk in the US, with Starlink’s potential entry into India likely to be a key discussion point. The satellite internet rollout has faced delays due to debates over spectrum allocation, regulatory hurdles, and security concerns. While India favors direct spectrum assignment over auctions, Starlink’s license is still under review.
Prime Minister Narendra Modi is scheduled to meet tech billionaire Elon Musk during his visit to the United States, with Starlink’s much-anticipated entry into India expected to be a key point of discussion.
Sources familiar with the matter, as reported by Reuters, indicate that Modi and Musk will hold one-on-one talks, during which the Indian government aims to gain clarity regarding Starlink’s plans to launch satellite broadband services in the country.
The meeting coincides with Modi’s two-day visit to the US, where he is also set to meet with President Donald Trump.
The talks with Trump are expected to center around trade negotiations, tariff concessions, and other economic issues. However, aside from his meeting with Musk, Modi is not likely to meet with any other prominent business leaders during this visit.
Regulatory hurdles & opposition from domestic companies
Starlink has long viewed India as a key market, but it’s entry has been delayed due to regulatory hurdles and opposition from local telecom companies. A primary point of dispute is the method of spectrum allocation for satellite-based internet services.
While Elon Musk’s SpaceX has advocated for direct administrative spectrum allocation, Mukesh Ambani’s telecom company has strongly supported an auction-based system.
Ambani’s firm, which has invested $19 billion in acquiring airwaves, is concerned that Starlink’s entry could disrupt the broadband and telecom market, potentially causing a loss of customers, according to a Reuters report.
Starlink’s license application remains under review, with several critical regulatory approvals still pending.
The Telecom Regulatory Authority of India (TRAI) was originally expected to finalize its spectrum allocation guidelines by December 2024.
However, the deadline has been postponed, creating uncertainty around when Starlink can officially launch its operations. Due to national security concerns, the government is likely to adopt a cautious approach before granting approval for the service.
Data Security concerns & Starlink’s challenges in India
In addition to regulatory delays, national security concerns have also slowed Starlink’s progress in India. In December 2024, Elon Musk revealed that Starlink services in the country had been suspended after authorities confiscated two devices — one located in an armed conflict zone and another connected to drug smuggling activities.
The Indian government has expressed concerns about the potential misuse of satellite internet for illegal activities, particularly its ability to facilitate anonymous communication. To address these issues, Musk has reportedly shown a willingness to comply with India’s data localization requirements, ensuring that user data is stored within the country.
Such assurances could be key to easing regulatory concerns and speeding up Starlink’s entry into the Indian market.
Global presence & expansion plans of Starlink
Starlink, the satellite internet service operated by SpaceX, has grown significantly since its launch in 2019. It now provides broadband connectivity across more than 100 countries and territories, supported by a network of over 7,000 satellites in low Earth orbit.
While Starlink was initially developed to enhance internet access in rural and remote areas, it has also played a critical role in military operations, particularly during the Russo-Ukrainian war, where it was contracted by the US Department of Defense.
SpaceX had ambitious plans for Starlink’s expansion into India. In 2021, the company began accepting preorders and appointed Sanjay Bhargava, a former PayPal colleague of Musk, to lead its India operations.
However, regulatory opposition forced the company to suspend preorders, and Bhargava resigned just three months later. In 2023, reports indicated that Starlink was close to obtaining operational approval in India, but ongoing spectrum allocation disputes have continued to delay its launch. In April 2024, the company reportedly received in-principle approval from the government, with the final decision now awaiting the communications minister’s sign-off.
Tesla and EV growth in the Indian market?
While Starlink is expected to be the primary focus of the Modi-Musk discussions, it remains unclear if Tesla’s potential entry into India will also be on the agenda. Elon Musk has consistently expressed interest in launching Tesla in India but has pointed to high import taxes as a significant hurdle.
Discussions about establishing a local manufacturing plant have been ongoing, but no definitive plans have been finalized yet.
One potential area of collaboration could be the sourcing of electric vehicle (EV) components. India has been actively working to strengthen its EV supply chain, presenting an opportunity for Tesla to explore increased procurement of auto parts from the country.
However, Tesla’s India ambitions remain on hold for now, pending any significant policy changes or investment commitments. Meanwhile, the demand for Starlink’s satellite internet services continues to grow, especially in rural and underserved regions where conventional broadband infrastructure is limited.
The Indian government has supported satellite internet expansion by advocating for direct spectrum allocation, but regulatory delays persist. If approved, Starlink could revolutionize India’s internet landscape, delivering high-speed connectivity to remote areas and increasing competition in the broadband market.
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