In a phone conversation on April 18, 2025, Indian Prime Minister Narendra Modi and Tesla CEO Elon Musk explored avenues for deepening India-US collaboration in technology and innovation. The call, a follow-up to their February 2025 meeting in Washington, DC, comes at a critical juncture as India navigates global trade tensions and seeks to bolster its tech ecosystem.
What did they talk about?
The conversation reportedly centered on strengthening bilateral ties in cutting-edge sectors, building on topics from their earlier meeting.
- Technology and Innovation: The call emphasized the ‘immense potential’ for US-India partnerships in areas likeartificial intelligence, digital connectivity, and sustainable development. PM Modi reiterated India’s commitment to advancing these collaborations, aligning with the country’s push for technological self-reliance under initiatives like ‘Make in India.’
- Electric Vehicles (EV) and Tesla: With Tesla poised to enter the Indian market, the discussion likely touched on the company’s plans to ship thousands of electric cars to a port near Mumbai by the third quarter of 2025, targeting sales in Mumbai, Delhi, and Bangalore. This follows India’s recent reduction of customs duties on high-end cars from 110% to 70% in the 2025 Union Budget, a move seen as an incentive for manufacturers like Tesla.
- Starlink and Satellite Internet: Mr. Musk’s satellite internet service, Starlink, is nearing its India launch, with partnerships secured with Indian telecom giants Reliance Jio and Bharti Airtel in March 2025.
- Space Exploration: The conversation revisited earlier talks on space cooperation, potentially referencing India’s 2023 signing of the US Artemis Accords for lunar and space activities. Mr. Musk’s SpaceX, a key player in global space ventures, could play a role in future India-US space initiatives.
The context
The conversation between PM Modi and Mr. Musk took place against a backdrop of global economic and geopolitical developments:
- US-China trade war: The conversation took place amid escalating trade tensions between the US and China, triggered by US President Donald Trump’s imposition of 27% tariffs on Indian goods on April 2, 2025, followed by a 90-day pause for negotiations. India is working toward a bilateral trade agreement with the US to mitigate these tariffs, and Musk’s influence in the Trump administration as head of the Department of Government Efficiency (DOGE) makes him a key figure in these discussions.
- JD Vance’s India visit: The call preceded US Vice President JD Vance’s four-day trip to India starting April 21, 2025, where he met PM Modi to discuss economic, trade, and geopolitical ties. The timing suggests the Modi-Musk dialogue was part of broader efforts to strengthen India-US relations.
- Musk’s Growing Ties with India: Mr. Musk, who has called himself a ‘big fan’ of PM Modi, has been engagingwith India since Mr. Modi’s tenure as Gujarat’s Chief Minister. Their February 2025 meeting in Washington, where Mr. Musk gifted Modi a Starship heatshield tile and Modi presented books to Musk’s children, set a warm tone for ongoing dialogues. Musk’s announcement of a planned India visit later in 2025, shared on X on April 19, further signals deepening ties.