New Delhi, April 18 -- Prime Minister Narendra Modi spoke with Elon Musk on Friday, discussing avenues for cooperation in technology and innovation. The conversation was confirmed by the Prime Minister through a post on X, where he stated, "Spoke to @elonmusk and talked about various issues, including the topics we covered during our meeting in Washington DC earlier this year. We discussed the immense potential for collaboration in the areas of technology and innovation."
Modi further noted India's commitment to deepening ties with the United States in the technology sector.
The call comes at a time of heightened global trade tensions, particularly between the US and China. Recent tariff escalations-245 per cent on Chinese exports to the US and a 125 per cent retaliatory tariff imposed by China-have disrupted supply chains, especially in the technology and manufacturing industries. With the bulk of American tech production based in China, companies are now actively exploring alternate manufacturing hubs.
India, with a growing manufacturing ecosystem in both technology and automobile sectors, has emerged as a potential destination. Tesla, Musk's electric vehicle company, has previously shown interest in the Indian market. Following Modi and Musk's meeting in Washington earlier this year, Tesla began hiring in India, posting multiple job openings across various departments.
Tesla's entry into India has faced hurdles in the past, notably due to high import duties. However, policy changes announced last year, including a conditional reduction in electric vehicle import tariffs, appear to have paved the way for renewed discussions. The Indian government requires foreign EV manufacturers to commit at least $500 million in local manufacturing to avail these benefits.
Additionally, the Union Budget 2025 reduced the basic customs duty on high-end cars above $40,000 from 110 per cent to 70 per cent, signalling openness to foreign investment in the automobile sector.
Musk's interest in India also includes his Starlink satellite internet venture. While the service has over 4.6 million users worldwide, its rollout in India has encountered regulatory hurdles. India's telecom minister, Jyotiraditya Scindia, stated in November that Starlink would require full compliance with security norms before being granted a licence.
Though Musk has criticised India's earlier spectrum auction policies, the government later revised its approach to allocate satellite spectrum through administrative assignment rather than competitive bidding.
India, with over a billion internet users and low-cost data rates, presents a massive opportunity. However, industry observers note that Starlink's relatively high pricing may face resistance in a price-sensitive market.
Published by HT Digital Content Services with permission from Millennium Post.