India’s growing role in the global space economy took centre stage as Prime Minister Narendra Modi met with Tesla (NASDAQ:TSLA) and SpaceX CEO Elon Musk in Washington.
While much of the media attention focused on a symbolic exchange—a heatshield tile from SpaceX’s Starship spacecraft—the meeting underscored deeper strategic interests.
The discussions revolved around artificial intelligence, sustainable development, and space collaboration, but a critical undercurrent was India’s ongoing regulatory debate over satellite internet.
As Starlink awaits licensing in India, the meeting signals the country’s push to position itself as a key player in space-based communications and emerging technologies.
Earlier in the day, the prime minister also met with President Trump.
India’s Starlink regulatory hurdle
India’s space programme has rapidly gained momentum, cementing its position as a formidable force in the global space industry.Modi’s meeting with Musk came at a time when India is refining its regulatory framework for satellite broadband services—a sector where SpaceX’s Starlink is a major contender.
Starlink’s application to operate in India has been under scrutiny due to spectrum allocation disputes, particularly with Reliance (NSE:RELI) Jio, a dominant player in the Indian telecom sector.
The Indian government has yet to finalise spectrum policies for satellite-based broadband, which could significantly impact how Starlink and other satellite internet providers enter the market.
The regulatory uncertainty has created a bottleneck for SpaceX, which had earlier faced pushback when it began pre-selling Starlink connections in India without government approval.
Strengthening US-India ties in tech
Beyond satellite internet, Modi and Musk’s discussions highlighted India’s broader efforts to collaborate with the US in AI development, space exploration, and sustainable technologies.India’s recent signing of the Artemis Accords, a US-led initiative outlining global norms for space exploration, signals a shift towards deeper cooperation between the two countries.
SpaceX’s interest in India goes beyond Starlink, with potential future collaborations in rocket launches and reusable launch vehicle technology. AI was another key focus, as India works to integrate AI-driven solutions in governance and industry.
Musk’s Tesla is also closely monitoring India’s electric vehicle (EV) policy landscape, as the company eyes potential manufacturing opportunities in the country.
India’s push for AI leadership aligns with Musk’s own ambitions in the sector, with his AI firm xAI looking to challenge OpenAI.
As AI regulation becomes a global talking point, India’s policies on responsible AI deployment are increasingly relevant to US firms exploring partnerships in the region.
India’s push for global tech leadership
While Musk’s gift of a Starship heatshield tile to Modi grabbed headlines, the broader takeaway from the meeting is India’s positioning as a major stakeholder in the future of space-based communications and AI.The country is navigating complex policy decisions that will shape its role in global satellite broadband and deep-tech innovation.
The meeting reflects India’s balancing act between fostering private-sector innovation and maintaining regulatory control over critical technologies.
As India refines its space and AI policies, partnerships with global tech giants like SpaceX and Tesla will be instrumental in shaping its future in these domains.