Musk Seeks Tesla Concessions from Modi as Trump Warns of Reciprocal Tariffs

In line with expectations, Tech Billionaire and the US government’s “special employee” Elon Musk seems to have sought concessions from Prime Minister Narendra Modi during their meeting on February 13. PM Modi met with Tesla CEO Musk at Blair House in Washington DC before his bilateral meeting with President Trump at the White House.

According to the Economic Times report citing sources, Musk asked for lower tariffs on imported electric vehicles (EVs), as well as an early license for his satellite internet venture Starlink in India.

While PM Modi did not confirm these demands, he did say in a post on X that the discussion focused on "various issues, including those he is passionate about such as space, mobility, technology, and innovation."

"I talked about India’s efforts towards reform and furthering ‘Minimum Government, Maximum Governance,'" PM Modi said.

While President Trump’s “special employee” sought lower tariffs from PM Modi, he was signing an executive order promising to impose reciprocal tariffs on all trading partners.

Talking about his expected meeting with PM Modi, he said that India charges higher tariffs, and the US plans to do the same in trade with them.

On the Modi-Musk meeting, President Trump said, "Musk met Modi, I assume he wants to do business in India."

Hurdles In Tesla and Starlink's India Foray

Elon Musk has long demanded that the Indian government lower import tariffs on electric vehicles (EVs) to help start selling Tesla cars in India. Last year, PM Modi's government offered a concession, reducing the import duty to 15% for the company to sell certain EV cars in India if they promised to set up a local manufacturing facility.

However, so far, Musk has not announced any time-bound plan to start selling cars in India. It was reported last year that Tesla officials were in India to look for showroom spaces, but the plans fell through soon after.

Point to note: with existing norms and Tesla's price tag, it would be difficult to sell the premium EVs in India. The Indian EV market, still under-penetrated, is dominated by low cost cars of Tata Motors.

On the space internet front, Starlink has applied for a license to provide its services in India. Although it is still pending approval. This came after the Indian government changed its policy, opting to administratively allocate spectrum rather than auction it off, as they have done with 4G, 3G, and other telecom spectrums. Musk has been demanding this change.

However, the move has been fiercely opposed by Mukesh Ambani-led Reliance Jio, which is also looking to venture into the space.