Elon Musk Likely To Meet PM Modi During His U.S. Visit

Elon Musk, CEO of Tesla and SpaceX, is expected to meet with Indian Prime Minister Narendra Modi during Modi's visit to the United States from February 12 to 14, 2025, at the invitation of President Donald Trump. Musk is likely to join a select group of CEOs meeting with Modi on February 13.
Musk has expressed interest in introducing Tesla to the Indian market, and discussions may include the potential for Tesla's electric vehicles in India and the required regulatory approvals. Tesla's potential entry into the Indian market has been a topic of much discussion, particularly regarding import duties on electric vehicles (EVs). Tesla has been seeking lower import duties to facilitate its entry into the Indian market. Previously, India imposed high import duties on cars to encourage local manufacturing, with rates of 100% for cars costing more than $40,000 and 60% for cheaper vehicles. In 2021, Tesla sought a 40% import duty on fully assembled electric cars.
Negotiations between Tesla and the Indian government faced hurdles, as officials wanted Tesla to commit to local manufacturing before considering duty cuts. Indian firms have objected to import duty reductions, saying that it will hurt investments made to scale up localisation.
The Union Budget 2025 introduced changes that may make Tesla’s entry into India more feasible, including reducing the tax on luxury cars above $40,000 from 125% to 70% and waiving basic customs duties on EV battery components. India has also been adjusting its policies to attract global automakers.
Tesla is planning to launch a low-cost EV, possibly entering the Indian market by 2025. Tesla has resumed its search for showroom space in New Delhi, potentially signalling a re-entry into the Indian market. Tesla is reportedly in discussions with DLF, India's largest property developer, to secure showroom and operational spaces in the Delhi-NCR region.
Tesla’s plan to manufacture its affordable electric car in India and Mexico could occur in 2025 or later. This timeline aligns with the government’s new EV policy, which mandates setting up a manufacturing plant in India within three years, extending up to 2027.
Elon Musk's Starlink is working towards launching its satellite internet service in India, with recent developments indicating progress in regulatory approvals and compliance.
Starlink has agreed "in principle" to comply with India's security and data localization policies, which was a major hurdle. This includes storing all user data within the country and ensuring that intelligence agencies can access data when necessary. Starlink has submitted its formal acceptance of key conditions to secure a license for launching satellite broadband services in India.
Telecom regulators are preparing to allocate spectrum for satellite internet services, and the Department of Telecommunications (DoT) is expected to make a decision regarding spectrum allocation. The decision was expected by the end of January 2025.
GMPCS License: Starlink is seeking a Global Mobile Personal Communication by Satellite Services (GMPCS) license, which is required to provide satellite broadband in India and allows the company to apply for trial spectrum at a nominal fee.
Strengthening ties with the Indian Space Research Organisation (ISRO) is also expected to be on the agenda, potentially leading to advancements in space technology and exploration.
As head of the U.S. Department of Government Efficiency (DOGE), Musk is likely to advocate for a level playing field for Tesla before committing to retail operations in India. The Trump administration is expected to push for lower import duties on fully built electric vehicles (EVs) entering India.
Musk's anticipated visit to India was previously postponed due to commitments at Tesla. Sources suggest that any meeting between Musk and Indian officials would be positive but might not result in immediate manufacturing commitments in India.
Agencies
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