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Hello, it’s Spriha Srivastava, CNBC International Executive Editor, writes from London. This week I look into Elon Musk’s relationship with India, why it finally goes from talking to action and about what actually goes to the map.
The report “Inside India” this week is taking place in this report. How is what you see? You can subscribe Here.
A great story
India has long been on the radar Elon Musk. But for many years the relationship was mostly played in headlines and half starts.
Remember 2024? Musk was ready to fly to New Delhi to meet with Prime Minister Modi -until he canceled at the last moment and instead jumped into Beijing.
Anyway, let’s take a step back here. Tesla gave a sign of serious interest in the Indian market in 2021, just to schedule their plans if negotiation talks. Starlinka, a satellite online enterprise Musk, began to accept preliminary orders in 2021, but had to hit the pause after the normative obstacles made the company to issue money. In most of the last decade, India’s ambitions remained exactly – ambitions.
It finally begins to change.
In recent weeks, they have been interesting for Moscow Indies. Tesla opened its first salon in the Bandra Kurla complex in Mumbai. Starlink has received the necessary regulatory permit to launch commercial services in India. And all this happens only a few weeks after Musk publicly deprived of US President Donald Trump, noting a broader shift in his global strategy.
On February 13, 2025, Elon Musk meets with Indian Prime Minister Narendra Modi at the Blair House in Washington, USA.
Anadolu | Anadolu | Gets the image
So why a sudden impetus?
On one level, India offers a new runway for growth at a time when its relations in China and the United States are becoming more complex. For the government of India, attracting investments from one of the most high-profile entrepreneurs in the world is a victory that fits perfectly “to make the country” in India, especially in pure technology and digital infrastructure. But while the headlines belong to the eyes, the reality on Earth shows that everything is in the early stages.
Let’s look at the current Tesla status in India. The idea is not a dominance in the mass market, at least not yet. It is about planting a flag in a premium segment. Model Y, the most popular Tesla car worldwide, has officially landed in India for nearly $ 7 million (about $ 79,000). Speaking of this in the future, the most sold cars in India are usually worth the share of this. India is not one market size. Along with its large market, which is due to values, the growing luxury segment exists when global brands firmly compete for attention. BMW, Mercedes and Audi are expanding electric vehicles in India, and Tesla has now joined the fight.
The Mumbai Exhibition Hall is only the first step. India’s new policy reduces import duties for companies wishing to produce locally. In fact, in April 2024, it was reported that Tesla began to explore places for the EV potential factory in India with investing up to $ 3 billion. This would mean a fundamental shift by potentially opening the doors more affordable EV models, increasing the supply chain activity and creating new jobs. But now it’s a slow construction, not a sprint.
And then there is a task of charging. EV adoption in India is different from other markets. Two- and tricycle is dominated by an electric car landscape, and most are charged at home using standard sockets. That is why India has not yet developed a wide public infrastructure you see in China or in the US
For luxury Tesla buyers, however, fast charging is not necessary. They expect conveniences, which means that Tesla will need to actively invest in public chargers, especially in cities such as Mumbai, Delhi and Bengalur, where demand is likely to be concentrated. Tesla began to hire these roles in India, but the creation of this network will take time.
Growing antennas
Along with EV Push, Entry Starlink into India can be engaged in a completely different market: rural internet. In the last decades, cheap mobile data has been naming the Internet boom in India, but rural areas have remained insufficient, especially in regions where fiber laying is expensive and logically difficult. STARLINK Solution – Travel Internet directly from space bypassing these obstacles.
But: satellite internet is not cheap. Starlink usually costs $ 100 a month, which is much more than what most Indian consumers pay for the Internet. This suggests that the real game here is probably public contracts and partnerships with rural schools, medical workers and remote businesses that need connection regardless of cost. Starlink is reportedly collaborating with Telecom Giants, such as Reliance Jio and Bharti Airtel to distribute their service, which testifies to a joint approach rather than destructive.
The terms of all this are also interesting. A turning turn of Musk to India comes immediately after his public fall with Trump, after disagreements for tariffs and subsidies. Whether these two things are directly connected, it is controversial, but the coincidence is hard to ignore. At least it is part of a broader international diversification strategy that moves it away from political confusion in the US.
For Indian consumers, the arrival of Tesla and Starlink means new technological options, although they are mostly focused on wealthy and high -seeded rural segments. For investors in India in India, signals that increase confidence in the country’s long -term history. Because other global technological and EV Giants are watching on the sidelines, Musk’s success may mark the beginning of a new wave of foreign investment in India.
Musk has been talking about India for years. The difference this time? The basis is laid. The next few months will show whether it is, finally, the beginning of something lasting or just another section in difficult, starting relationships.
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In the markets
On Thursday, Indian markets traded below.
Landmark Nifty 50 decreased by 0.12%, while the BSE Sensex index fell 0.16% as of 12:15 local time (2:45 am).
The 10-year profitability of government bonds in India was slightly decreased by 6.308%.
– Amala Balarshner
Applicable
July 24: HSBC Flash PMI in July
Each weekdays of CNBC news “Inside India” gives you news and comments to the market to new power plants and people behind its growth. Live the show on YouTube and Lave Highlics there.
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