What will transpire between US Department Of Government Efficiency (DOGE) chief Elon Musk and Indian Prime Minister Narendra Modi when they meet Friday?
Will Musk, who is very close to US President Donald Trump, demand concessions for the sale of electric vehicles to India?
The Tesla CEO is most likely to discuss the issue of his company making massive investment in India if he gets concessions for electric vehicles.
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Besides, Elon Musk is also likely to raise the issue of satellite telephone.
Analysts beleive, he may offer to take care of the security concerns of India.
In a raid conducted by the Indian Army and Assam Rifles, Starlink satellite communication equipment, including a dish and router, were recovered in Manipur and Assam.
Elon Musk’s Starlink Gets Jolt
Elon Musk’s Starlink got a severe jolt recently when the Indian government declared that the satellite spectrum for broadband would be allocated administratively rather than through auction.
With this, the race between the world’s richest man and Mukesh Ambani, known for his good relations with the ruling party, intensified. Ambani, the owner of Reliance Jio supports the government’ stand, criticised by Musk.
Satellite broadband is a good option for India as it provides internet access anywhere within the satellite’s coverage.It helps to bridge the hard-to-reach digital divide as well.
On the other hand, traditional services uses telephone lines to transmit data or cable.
The competition to grab this business is very intense as the number of satellite internet subscribers in India may reach two million this year.
The competition has been intensified as about half a dozen key players, including Ambani’s Reliance Jio, are in the field.
Ambani’s Reliance Jio has joined hands with leading satellite operator Luxembourg-based SES Astra.
If media reports are to be believed, Jio has chosen SES because it operates medium-Earth orbit (MEO) satellites at a much higher altitude and offers a cheaper system.
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Stalink has already positioned 6,419 satellites in orbit enjoying a subscriber base of four million spanned across 100 countries.
If Elon Musk’s firm gets the satellite broadband rights, the ruling BJP may boast of foreign investment in the country.
On the other hand, Mukesh Ambai has very good relations with Prime Minister Narendra Modi.
Will Tesla Figure In Talks?
Besides, Elon Musk’s Tesla is trying its best to find a foothold in India, the country where the automobile sector is spreading on a massive scale, buoyed by the emergence of a big middle class.
Besides, India has a developed infrastructure base for the automobile sector, having a large number of skilled and cheap workmen.
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Tesla is holding talks with the government of India. The earlier attempt of the company collapsed because of increased tariffs on automobile parts.
Tesla, with its operations in China, sold about 1.79 million cars in 2024, 1% less than 1.8 million in 2023. However, it is facing stiff competition from BYD, which sold 1.76 million EVs last year.
