How Donald Trump's win could boost Musk's & Bezos' India ambitions

Donald Trump's return to the White House may bring potential advantages for Elon Musk and Jeff Bezos, as his policies favouring US companies could create a conducive environment for them

With Donald Trump’s re-election as US President, significant shifts are expected in the regulatory environment for US businesses operating in India. Elon Musk and Jeff Bezos, who have long-standing interests in expanding their ventures in India, could find new momentum for their ambitions due to Trump’s business-friendly stance.

 

Trump’s return to the White House brings potential advantages for the billionaire business magnets, as Trump’s policies could create conducive regulatory environment for their respective ventures. Musk’s close alignment with Trump suggests he may gain significant support in overcoming regulatory challenges for Tesla and Starlink. Meanwhile, Bezos, despite his neutral stance, may also benefit from policies that make it easier for Amazon to expand its presence in India. 

 

 

Elon Musk’s growing influence

Elon Musk, CEO of Tesla, SpaceX, and Starlink, has consistently shown interest in the Indian market across his electric vehicle and satellite broadband businesses. However, regulatory obstacles have slowed down his entry, especially with Tesla and Starlink, in India. With Trump back in office, Musk could see enhanced backing from the US administration, potentially easing his entry into the Indian market.

 

Potential leverage in satellite broadband

One of Musk’s key interests in India is launching Starlink, his satellite internet service. The venture aims to provide high-speed broadband through a satellite constellation, but Musk has been lobbying for lower spectrum charges and an administrative allocation of satellite spectrum. This approach is opposed by India’s telecom giants, Reliance Jio and Bharti Airtel, who are advocating for a competitive auction model to allocate spectrum.

 

Musk and Trump’s proximity could strengthen Musk’s hand in these negotiations. Given Trump’s pro-American business policies, it’s likely he would press for a regulatory environment in India that benefits US-based companies like Starlink. Indian policymakers are already leaning toward administrative spectrum allocation, which aligns with global trends, adding further weight to Musk’s case. With Trump’s backing, Starlink might finally secure a smoother entry into India’s broadband market, challenging the dominance of Jio and Airtel.

 

Electric vehicles: Possible regulatory relaxation for Tesla

Tesla’s India plans have been in the works for years but it faced setbacks due to high import duties and competition from local players such as Tata Motors and Mahindra. Although Musk expressed willingness to set up a manufacturing plant in India, the lack of a concrete agreement has delayed Tesla’s entry. Trump’s re-election may provide Musk with the leverage needed to negotiate a favourable regulatory environment for Tesla. Experts suggest that Trump’s influence could facilitate import duty reductions or other regulatory incentives, accelerating Tesla’s arrival in India.

 

Musk-Trump alliance: How it would pan out?

Musk’s vocal support for Trump’s re-election signals a strategic alignment that may yield substantial advantages for Musk’s companies. Musk reportedly contributed over $130 million to Trump’s campaign, investing both money and time into mobilising voters in key states. This relationship not only reflects Musk’s commitment but also suggests he may now hold sway within Trump’s administration.

 

A Trump administration could ease federal scrutiny on Musk’s businesses. Tesla and SpaceX, which are under several federal investigations and lawsuits related to consumer safety and workplace issues, could see some of these probes reduced or deprioritised. Trump’s promise to cut regulatory oversight aligns with Musk’s criticisms of US regulatory agencies.

 

As Trump stated during his victory speech, Musk’s contributions and commitment were noteworthy. “A star is born,” said Trump while referring to Musk. This endorsement, along with the alignment of their interests, could propel Musk’s India ambitions by giving him stronger bargaining power in negotiating regulatory terms for Starlink and Tesla in the country.

 

Jeff Bezos’ India expansion plans 

Amazon has been intensifying its efforts in India since 2013, not only expanding e-commerce but also venturing into sectors like digital payments, cloud computing, and media streaming. India is one of Amazon’s most critical markets outside the US, with a vast talent pool and substantial growth potential. Bezos has predicted, “The 21st century will be the Indian century,” highlighting his belief in India’s long-term potential.

 

Trump’s presidency could prove beneficial for Amazon’s India plans as well. Given Trump’s inclination to support American businesses, Bezos might expect more supportive policies from the US administration, helping Amazon navigate India’s complex regulatory landscape. This could be particularly advantageous for Amazon Web Services, which faces competition from local and global players alike.

 

Amazon’s operations in India have faced regulatory scrutiny from the Competition Commission of India (CCI) over concerns about preferential treatment, deep discounting, and its joint ventures with influential local businesses. A pro-business Trump administration might push for the resolution of these regulatory hurdles, potentially creating a more favourable environment for Amazon in India.

 

In contrast to Musk’s overt support for Trump, Amazon and Blue Origin boss Jeff Bezos maintained a reserved stance during the campaign. Bezos, who owns The Washington Post, upheld the publication’s impartiality by not endorsing any candidate. However, after Trump’s win, Bezos congratulated him on X, acknowledging the president-elect’s “extraordinary political comeback”. If Trump’s administration actively advocates for the interests of American companies in India, Bezos could find it easier to expand Amazon’s market share across its diverse verticals in India.

 

Implications for Indian telecom, e-commerce sectors

The potential gains for Musk and Bezos from Trump’s presidency could create ripple effects in India’s telecom and e-commerce industries. For telecom giants Reliance Jio and Bharti Airtel, the rise of satellite broadband services like Starlink poses a direct threat. With Trump likely advocating for administrative allocation of satellite spectrum to American firms, Jio and Airtel may find it increasingly challenging to push for an auction model.

 

In the e-commerce sector, Amazon’s bolstered position under the Trump administration could lead to heightened competition with Flipkart, India’s largest homegrown e-commerce company. A smoother regulatory path for Amazon would enable it to increase its footprint in India more aggressively, potentially reshaping the competitive dynamics within the sector.