Janice R. Andrews
Musk’s Twin Ventures Poised to Transform Indian Markets
Elon Musk’s business empire is setting its sights on India through two major initiatives: Tesla’s electric vehicles and Starlink’s satellite internet service. Both ventures are approaching crucial regulatory milestones that could reshape their respective sectors in the world’s most populous nation.
Tesla’s entry into India appears imminent after prolonged negotiations over import duties. Currently, luxury EVs face a 110% tariff, but ongoing discussions between U.S. and Indian leadership suggest potential policy adjustments. India’s existing EV regulations, which mandate substantial investment and local revenue generation from foreign manufacturers, may be modified to accommodate Tesla’s business model.
The American automaker plans to begin with imports before transitioning to local production. While premium pricing—with the Model 3 starting at approximately Rs 35 lakh and Model Y at Rs 50 lakh—may insulate domestic mass-market manufacturers, industry analysts suggest that competitive pressure will more likely come from Asian EV manufacturers offering advanced technology at lower price points.
In the telecommunications sector, Starlink’s satellite internet service is advancing toward regulatory clearance from IN-SPACe, despite initial reservations about security protocols. The Indian government’s recent decision to distribute satellite spectrum through administrative channels rather than auctions marks a significant shift, despite opposition from established telecom providers Reliance and Airtel.
The satellite broadband sector, projected to reach $2 billion in value by 2030, stands at a crossroads. The current market, dominated by Reliance with its 440 million telecom subscribers and quarter share of wired broadband services, faces potential disruption from new satellite internet providers including Starlink, Amazon’s Project Kuiper, and OneWeb. These new entrants promise to expand connectivity to underserved regions and increase market competition.
Musk’s dual market entry through Tesla and Starlink signals a potential transformation in India’s automotive and digital infrastructure landscape, with implications for both urban and rural development.
