PM Modi Speaks To Elon Musk Ahead Of Tesla's India Entry, Discusses Tech Ties: 'Immense Potential...'

The discussions come at a time when Elon Musk’s Tesla and Starlink have shown keen interest to enter the Indian market.

It also comes against the backdrop of ongoing negotiations for a proposed bilateral trade agreement between New Delhi and Washington. The two sides have aimed at finalising the first phase of the pact by fall (September-October) this year.

In February, PM Modi met Musk, the CEO of Tesla and SpaceX, during his visit to Washington DC and discussed various issues, including space, mobility, technology and innovation.

Musk enjoys a prominent position in the US government as the de facto head of the Department of Government Efficiency (DOGE).

On Wednesday, Piyush Goyal held discussions with senior executives from Starlink, the satellite internet arm of Elon Musk’s SpaceX, to discuss the company’s likely entry into the country. The delegation from Starlink included Vice President Chad Gibbs and Senior Director Ryan Goodnight.

Starlink’s Entry Into India

Startlink has shown its interest to enter the Indian market to provide satellite-based internet services. The company awaits clarity on the government’s upcoming spectrum policy. Permission for the company is also stuck for security clearance.

Reliance Jio in March announced a pact with Elon Musk’s SpaceX to bring Starlink satellite internet services in India. Bharti Airtel has also signed a similar partnership deal with SpaceX.

Meanwhile, the government has already granted license to Startlink rivals Bharti Group-backed Eutelsat OneWeb and Jio Satellite Communications for about one-and-a-half years for providing satellite internet services.

However, these companies are yet to start their operation as the government has so far not finalised spectrum allocation rules. The spectrum allocation process will begin after telecom regulator Trai firms up its recommendation on the subject.

Starlink is considered to be a disruptor in this segment as it operates the world’s biggest constellation of over 6,750 satellites whereas Eutelsat OneWeb has little over 600 satellites and Jio’s satellite partners operate nearly 70.

Tesla Entry Into India

Apart from Startlink, Elon Musk’s EV maker Tesla is also preparing to enter the Indian markets. In February, the company also opened vacancies for several job roles in India (the ‘Mumbai Suburban’ area).

The job roles included service advisor, parts advisor, service technician, service manager, sales & customer support, store manager, sales & customer support, business operations analyst, customer support supervisor, customer support specialist, delivery operations specialist, order operations specialist, inside sales advisor, and consumer engagement manager.

According to reports, the US-based company has selected locations for two showrooms in New Delhi (Aerocity) and Mumbai (Bandra Kurla Complex). The opening dates for the outlets have not yet been decided.

The US carmaker had been hunting for showroom space in India since late last year in order to start sales in the world’s third biggest auto market, after putting market entry plans on hold in 2022.

Tesla’s initial plans involve the launch of an EV under $25,000, or sub-Rs 22 lakh, for sale in India.