Musk's broadside and New Delhi's reply
Musk took to X this week, alleging that powerful business interests have a "monopolistic chokehold" over the local market that's keeping Starlink out, and calling that "a crime against the people of India." He then asked if Mukesh Ambani is "the real boss of India?" Ambani's Reliance Jio Infocomm Ltd. ranks alongside one other telecom giant, and together the pair command over 80% of the market.
India's Ministry of Communications pushed back, saying the satellite-communications framework is fair and non-discriminatory, and that Starlink, Reliance's Jio Satellite Communications and Bharti Airtel-backed Eutelsat OneWeb are subject to broadly similar scrutiny. Ambani, Reliance Industries, Bharti Airtel and the ministry did not respond to emailed questions about Musk's posts. SpaceX and Tesla did not respond to requests for comment.
A license in hand, but security signoffs stuck
When Prime Minister Narendra Modi met Musk in Washington on Feb. 13, 2025, momentum seemed strong. In the months following that meeting, India's telecom department approved a key license for Starlink, authorizing it to offer satellite-communications services and removing one of the biggest barriers to entry. Yet final security approvals are still on hold.
Officials prioritizing technological sovereignty are hesitant to depend on a US-controlled network for vital communications, particularly after the war in Iran, according to people familiar with the deliberations. They are also weighing how any move on Musk could play in Washington.
Two factors have complicated matters, those people said. Musk's political standing in the US has been fluid: once a major backer of Donald Trump's re-election bid, he split with the president last year, and lately the two have shown signs of warming again. At the same time, New Delhi's enthusiasm has cooled after years of big promises and planned trips that did not happen. Add broader concerns about Musk's proximity to power in Washington and his habit of weighing in on sensitive issues, and there is little incentive to take steps that could land badly with the White House.
That wariness is spilling over into corporate India. Several of the country's most influential billionaires hurried to announce Starlink tie-ups when Musk appeared to be moving nearer to India and the incoming US administration. With Starlink in regulatory limbo, there is now limited pressure to move those deals forward, people familiar said.
Regulatory goodwill is an asset, and it can be spent quickly. Market Briefs covers that dynamic free every weekday.
Tesla's slow start, X's court fight and the missed trips
India spent years courting Tesla for local manufacturing, jobs and advanced auto tech. Instead, Tesla began with imports and opened its first Mumbai showroom in July 2025, but it did not pledge the local plant New Delhi sought. Fifteen months later, sales are hovering around 1,000 cars.
That is tiny next to Tesla's deliveries last year in China, which topped 625,000, and the 589,000 delivered in the US. Meanwhile, rivals including BYD and VinFast have steadily expanded in India's EV market.
X, now part of SpaceX, is another flashpoint. The platform is challenging in court the government's power to mandate content takedowns, adopting a stance more combative than that of some other American tech firms in India.
Then there were the no-shows. Musk had been scheduled to travel to India in April 2024 to meet Modi and detail Tesla investment plans, but he pulled out at the last moment citing "very heavy Tesla obligations," and appeared in Beijing a few days later. Following a conversation with Modi in April 2025, he renewed the promise, saying he was eager to come to India "later this year." That visit did not happen.
Bigger US-India frictions and what to watch for your money
The backdrop is getting tougher. This week, senior officials in both countries said that talks on a bilateral trade deal have hit an impasse. In turn, strains have intensified over India's ongoing imports of Russian oil, as well as Trump's attempt to wade into a regional dispute with Pakistan.
Separately, on Thursday Washington said it would suspend an immigration initiative that had provided a path to permanent residency for foreign workers, including many from India. After upbeat results, shares of Tata Consultancy Services advanced in Mumbai, and the lobby group Nasscom earlier noted that Indian IT giants have significantly cut their reliance on H-1B visas.
The balance of leverage is shifting. India once courted Musk for an EV factory, cutting-edge satellites and big investment. Today, Reliance and Airtel dominate telecom, Ambani is pushing a homegrown Starlink rival with ambitions to launch hundreds of satellites in the coming years, and Tesla faces a crowded car market with high import duties. For your watchlist: whether Starlink wins final security clearances, if Tesla's India sales climb out of their early slump, and how quickly local satellite and EV contenders scale up.
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