For years, Tesla pushed for lower import duties, insisting that India&rsquo;s steep tariffs made its entry unfeasible. The Indian government, firm on its &lsquo;Make in India&rsquo; stance, resisted. Now, suddenly, policies are shifting. Reports suggest that&nbsp;the government is modifying the terms of a new policy promoting the manufacture of electric vehicles (EVs) in the country. The&nbsp;tweaked EV policy may mandate carmakers to show a turnover of ₹2,500 crore in the second year itself. The incoming EV policy modifications seem almost tailor-made for Tesla, offering import duty relief and easing market entry barriers. The message is clear: India wants Tesla, even if it means bending its own rules. &nbsp;
This is not the first time Musk has played hardball with governments. In the US, he&rsquo;s battled regulators over Tesla&rsquo;s self-driving claims. In China, he won incentives by committing to local production. Now, India appears to be modifying policies to accommodate Musk&rsquo;s entry strategy, even allowing Tesla to start with imports before setting up a factory. This contradicts India&rsquo;s usual approach of demanding foreign automakers invest in local manufacturing first. &nbsp;
If Tesla is getting this treatment, what does this mean for Starlink&mdash;Musk&rsquo;s satellite internet venture that has struggled to gain regulatory approval in India? The government has so far resisted Musk&rsquo;s push for an administrative allocation of satellite spectrum, insisting on auctions instead. But Tesla&rsquo;s case raises a question: Will India also tweak its policies for Starlink? &nbsp;&nbsp;
The answer may lie in recent trends. The government&rsquo;s move to allocate satellite spectrum administratively instead of auctioning it was a win for Starlink, suggesting an openness to Musk&rsquo;s demands. If Tesla&rsquo;s fast-tracked entry sets a precedent, Starlink may find a smoother path into the Indian market&mdash;especially if Musk frames it as essential for rural connectivity. &nbsp;
However, there is one key difference: while India welcomes Tesla&rsquo;s EVs, Starlink touches on sensitive issues like data sovereignty&nbsp;and national security. India has been cautious about foreign-controlled communication networks, and any accommodation for Starlink is likely to come with strict oversight. &nbsp;
Still, the shift in Tesla&rsquo;s favour suggests that India is willing to bend, if not break, some of its long-held policies for the right player. If Musk deepens his ties with India through Tesla, it might not be long before Starlink gets its own set of regulatory concessions. &nbsp;
The question is: Is India rolling out the red carpet for Musk out of strategic interest, or is it being outplayed by a billionaire who has mastered the art of negotiating with governments?

India welcomes Tesla, but Starlink could be a whole other ballgame

By accommodating Tesla’s long-standing demands, is India setting a precedent for appeasing Musk’s other ventures—especially Starlink?

Currying Favour: Tesla Today, Starlink Tomorrow?

By accommodating Tesla’s long-standing demands, is India setting a precedent for appeasing Musk’s other ventures—especially Starlink?

February 21, 2025 | 13:24 IST