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The Indian Prime Minister Narendra Modi conducted a meeting with Elon Musk who leads Tesla and SpaceX to explore recent developments in Indian technological progress and electric vehicle infrastructure. During the meeting the leaders discussed how Tesla would invest in India along with Starlink satellite internet services and India's Artificial Intelligence policies.
The Indian market has been under Tesla's continuous exploration for multiple years. During previous negotiations the Modi government presented a concession of minimum 15% duty to persuade Tesla to build their manufacturing site in India.
However, the discussions between parties have resulted in minimal advancement. The Tesla CEO is simultaneously asking for reduced import duties on electric vehicles while he investigates local production of cheaper Tesla models to sell in India. The ongoing talks show that Tesla is likely to establish operations in India during the near future.
Starlink satellite-based internet service operated by SpaceX emerged as an essential matter for discussion during the conference. Musk advocates for a swift Indian government approval to enable Starlink's operation in India so it can supply high-speed internet to underdeveloped rural regions. Indian government policies regarding Starlink satellites bear substantial influence on future digital connectivity throughout the country.
SpaceX has indicated a need to enhance its relationships with the Indian Space Research Organisation (ISRO). Space technology developments in India support the potential for SpaceX and ISRO to establish cooperative projects concerning satellite construction and space discovery.
India and the United States are enhancing their partnership through their Initiative on Critical and Emerging Technology (iCET). The meeting also covered AI policies and the semiconductor industry, with both sides aiming to boost technological advancements in these areas.
Modi also met US officials, including National Security Advisor Mike Waltz, to review iCET and explore further technology partnerships. Discussions covered energy cooperation, including expanding US crude oil exports to India and joint ventures in Small Modular Reactors (SMRs). Defence collaborations were also highlighted, with prospects of General Electric engines being manufactured in India.
As part of his visit, Modi met Indian-origin politician Vivek Ramaswamy and US President Donald Trump to discuss trade and strategic alliances. The talks focused on defence industry partnerships and possible tariff reductions on luxury imports. Additionally, Modi extended an invitation to Trump for the upcoming Quad Summit in New Delhi.
The discussions between Modi and Musk signal a promising future for Tesla, Starlink and SpaceX in India. If regulatory approvals and investment deals move forward, India could witness significant advancements in the EV, space, and AI sectors.
