Elon Musk

The report comes from this week’s CNBC’s “Inside India” newsletter, which brings you timely, insightful news and market commentary about emerging powers and the large companies behind their rapid rise. Like what you saw? You can subscribe here.

Elon Musk He meets Prime Minister Narendra ModAs CNBC confirmed, I was in Washington, D.C. last month.

At that meeting, Musk reiterated the benefits of Modi’s range of internet access, according to sources in the room. Musk’s pitch seems to be effective, SpaceX announced a deal with two major players in Telecom India (Reliance’s Jio and Airtel) that the company will promote Starlink Internet services in India.

Musk has talked with Modi before about space and satellites. Why is India more popular this time?

Sources close to New Delhi said Musk’s influential role in the White House was undoubtedly inspiring the Indian government to reevaluate a Star Link Agreement.

Like us Reported last weekWe have no breakthrough in trade negotiations with Indian officials, Trump said The United States will charge India reciprocal tariffs According to domestic media, it will start from April 2.

India and the United States Trade negotiations continue, and the two star-stripe transactions are seen as Musk’s huge victory.

The world’s wealthiest people will eventually get the very important, mobile-savvy consumer market that has been fighting for over the years.

In addition, Musk competes with Reliance’s Jio and Bharti Airtel, and jointly occupy India’s booming telecom market. It also offers Musk a unique opportunity to work with the heads of rival Telecom professional and powerful Indian billionaires: Mukesh Ambani and Sunil Mittal. Both are tycoons with high respect and influence.

“Space, defense and India are basically the biggest opportunity for any company in the world right now. Musk has acquired these three companies… Meanwhile, it adds a whole new dimension to the American Power Forecast in the most controversial regions in the world,” said Eliot Pence, former head of Defense Technology International International, which added CNBC over the phone.

The possible “new dawn” of Indian and American companies

One of the biggest challenges for foreign companies breaking into India is protectionist policies, fierce competition from local competitors and the inability to penetrate India as an outsider. Including US companies Yuan,,,,, Walmart and Amazon There are various challenges facing the local area.

“Historically, India has been a very challenging market for American companies, but this could be a new dawn,” Pence added.

The chance is great. A few months ago, I was surprised by the limited access to the smaller towns to get internet.

Starlink using low-Earth orbit satellites may be useful in non-urban areas and densely populated areas where internet access remains spots.

“(Stars and Stripes) should provide a huge boost … especially in rural and remote areas of India, where traditional telecommunications networks are underperforming,” said Pravin Krishna, professor of international economics at Johns Hopkins University.

Neil Shah of Counterpoint Research explained that Starlink can provide Jio and Airtel without connectivity in rural India, and building telecom infrastructure is expensive. Jio and Airtel will then acquire local customers on behalf of Starlink and sell the equipment needed to run high-speed Internet.

Connectivity may be intermittent

But the challenge is waiting.

To officially enter India, Starlink still needs to overcome several regulatory hurdles and obtain a communications license currently under review by the Indian government.

Despite the promising partnership with Ambani and Mittal, the mechanisms behind the Starlink protocol raise several questions.

First, both Jio and Airtel gave up on the initial plan formulated with Europe The company introduces satellite Internet services in India? Last year, Reliance’s Internet Arm Jio and Luxembourg-based company SES announced a joint venture to operate satellites in India. Airtel has formed an alliance with Eutelsat Oneweb.

Citi analysts say Starlink will need to face technical challenges, such as limiting interference, as satellites usually require line of sight and are vulnerable to weather barriers.

“We believe that satellite networks will be more suitable for providing coverage gaps to remote rural areas rather than high-density urban areas where satellites may not match ground networks for capacity and coverage,” Citi analysts said.

Starlink also needs to make its services more affordable in price-sensitive markets like India, especially if the opportunity is in rural areas where incomes are usually lower.

“While there is a chance to connect a lot of people to the internet, the price will challenge Starlink’s scalability,” Shah told CNBC over the phone.

Starlink’s service is currently for users of the cheapest WiFi package in the US, with a monthly service fee of about $110 for individuals in India for less than a year.

Industry experts say this is where local governments will bear incentives and subsidies to make broadband more affordable. This is also where Musk’s new Indian billionaire friend can provide much needed guidance.

Musk’s connection with President Trump may bring the green light to India, but the success of the satellite space company depends on its two strong Indian partners, and the price it reaches.

India’s venture capital market is recovering. Total investment of startups in the country reached US$13.7 billion in 2024According to a report by Bain & Company, it’s an increase of 40% over the previous year. The number of transactions increased by 45% to 1,270 in 2024, compared with 880 in the same period last year. This makes India’s second largest market for venture capital firms in the Asia-Pacific region. The consumer technology sector has attracted the most investment, although traditional businesses such as banks and retail have experienced rapid growth.

Amazon is It is said that Plan to list its Indian units. According to Indian publications covering startups’ Indian publications, the U.S. e-commerce giant has begun talks with JPMorgan and Indian Investment Bank. Spin its Indian units Amazon will maintain inventory in the country rather than simply acting as an intermediary between buyers and sellers.

India and New Zealand began negotiations on free trade agreements. At the India-New Zealand Economic Forum in New Delhi on Tuesday, New Zealand Prime Minister Christopher Luxon said he is willing to strengthen economic ties with India and India Looking forward to signing a trade agreement within 60 days. Currently, the trade between the two countries is worth US$1.75 billion and can breed 10 times in the next 20 to 25 years, and it is predicted that India’s Minister of Industry and Commerce, Minister of Industry and Commerce, Piyush Goyal, Minister of Industry and Commerce, Piyush Goyal.

India and Malaysia seek to expand bilateral economic ties. South Asian countries’ Minister of Commerce and Electronics and Information Technology Jitin Prasada met with Malaysia’s Deputy Minister in New Delhi on Tuesday in New Delhi. At their meeting, the Minister of Trade and Commerce discussed the opportunity Deepen cooperation in semiconductor manufacturing and increase bilateral trade.

India’s wholesale prices fell. Wholesale price index in February was 2.38%According to Indian government data released on Monday, it was up 2.31% from 2.31% in January. Vegetable oil prices rose by 33.59%, resulting in a regaining of wholesale prices. The country’s consumer price index was released on March 12 and reported a 3.61% increase in February.

Indian stocks have been in active territory for four consecutive meetings in a week, of which Nifty 50 At 12:00 p.m. local time, the index rose 0.68%.

The benchmark 10-year Indian government bond yield was slightly higher as high as 6.7443%.

On CNBC TV this week, Adrian Zuercher of UBS Global Wealth Management said that India remains “one of the best structural stories in Asia.” Although the country’s economic growth has been “silenced” and the stock market has been a challenging year in 2025 as investors make profits and redistribute capital to China. Indian stocks are now more reasonable Zuercher added that it provides investors with “more room for upwards.”

Meanwhile, in another interview, Vikas Pershad of M&G Investments reinforced Zuercher’s view, saying the company is still “India is very constructive“The big Indian stocks are not only doing well in terms of price, but also in terms of “execution” that the country’s long-term growth story is “very intact”. While acknowledging that India’s economic growth may not expand as expected, it is still higher than anywhere else in the world.”