A recent telephonic conversation between Prime Minister Narendra Modi and Elon Musk, CEO of Tesla and SpaceX, has reignited discussions about potential technology collaboration between India and the United States. The conversation, which took place on Friday, April 18, 2025, built upon their previous meeting in Washington D.C. earlier in the year and reaffirmed their mutual interest in strengthening ties in technology and innovation.
The timing of the call is particularly noteworthy as Tesla is reportedly gearing up to enter the Indian electric vehicle (EV) market. Reports suggest that the company plans to ship a few thousand cars to a port near Mumbai in the coming months, with initial sales operations expected to launch in Mumbai, Delhi, and Bangalore by the third quarter of this year. Musk himself announced on social media that he intends to visit India later this year.
Tesla's anticipated debut in India aligns with ongoing discussions between New Delhi and Washington regarding import tariffs on EVs, which are likely to influence the carmaker's long-term strategy in the country. The Indian government has introduced a new EV policy aimed at attracting global investment in local manufacturing. This policy allows companies to import up to 8,000 EVs annually at a significantly reduced customs duty of 15%, provided they commit to investing approximately $500 million to establish local production facilities and meet certain domestic value addition requirements. Tesla has reportedly submitted a proposal outlining plans for a production facility with an annual capacity of 500,000 vehicles and an investment of $2-3 billion. The company also aims to introduce a budget-friendly EV tailored for the Indian market, priced between $22,900 and $28,625.
Beyond electric vehicles, the conversation between PM Modi and Elon Musk also touched upon opportunities for collaboration in space technology. SpaceX, under Musk's leadership, has been making strides in the satellite internet sector with its Starlink project. Starlink's application for a satcom license in India has been pending for years, with the government and company working to address various compliance requirements, including security aspects. However, recent developments suggest that regulatory clearance may be forthcoming soon.
Several Indian telecom giants, including Reliance Jio and Bharti Airtel, have already announced partnerships with SpaceX to offer Starlink's broadband services in India. These agreements are contingent upon SpaceX receiving the necessary regulatory approvals to operate in the country. The partnerships aim to leverage Starlink's satellite technology to extend high-speed internet access to remote and underserved areas of India, complementing the existing broadband offerings of Jio and Airtel.
Starlink's entry into India could mark a significant turning point in the country's connectivity landscape, especially in rural areas where traditional broadband infrastructure is lacking. However, challenges remain, including securing regulatory approvals and addressing concerns about pricing and competition. Analysts suggest that Starlink may adopt premium pricing in India due to limited capacity, potentially making it more expensive than traditional broadband services.
Despite these challenges, the potential for technology collaboration between India and the United States, as exemplified by the partnership between PM Modi and Elon Musk, remains immense. With India's rapidly growing tech ecosystem and Musk's ventures in cutting-edge innovation, there are numerous opportunities for mutually beneficial partnerships in areas such as electric vehicles, space technology, and digital connectivity.
