Trump's Win Could Boost Musk and Bezos' Expanding India Ventures

Photo : Reuters

With Donald Trump's re-election to the presidency, significant changes are expected in the regulatory landscape for U.S. companies, particularly for billionaires Elon Musk and Jeff Bezos, both of whom have long-held ambitions for greater expansion in India. Trump’s business-friendly policies could offer a more favorable environment for their ventures, potentially boosting their efforts to tap into the vast Indian market.

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Elon Musk, the CEO of Tesla, SpaceX, and Starlink, has made it clear that India is a critical market for his businesses, but regulatory hurdles have slowed down his entry into the country. Tesla’s efforts to enter the Indian electric vehicle market, for instance, have been delayed by high import duties and competition from domestic manufacturers like Tata Motors and Mahindra. Despite expressing interest in setting up a local manufacturing plant, the lack of progress on negotiations has been a key obstacle. However, with Trump’s return to office, Musk may find new leverage in negotiating a more favorable regulatory environment, including potential reductions in import duties or incentives for local production. Trump’s business-first approach could encourage the Indian government to offer better terms for Tesla’s entry, especially as Musk has publicly supported Trump’s re-election.

In addition to Tesla, Musk has plans to introduce Starlink, his satellite broadband service, to India. Starlink’s goal is to offer high-speed internet through a network of low Earth orbit satellites, but its entry into India has been held up by the country’s telecom regulations. Musk’s push for lower spectrum charges and an administrative allocation of satellite spectrum has met resistance from local telecom giants like Reliance Jio and Bharti Airtel, who favor a competitive auction model. Given Musk’s close relationship with Trump, the billionaire could gain substantial support for his satellite broadband venture, potentially strengthening his position in negotiations with Indian regulators. With the backing of Trump, who has championed American businesses abroad, Musk might see a smoother path for Starlink’s entry into India, allowing the company to challenge the dominance of local players.

For Jeff Bezos, founder of Amazon and space venture Blue Origin, Trump’s policies could also work in favor of Amazon’s efforts to expand its already substantial presence in India. Amazon has been operating in India since 2013, growing rapidly in e-commerce, cloud computing, digital payments, and media streaming. India is one of Amazon's largest international markets, and Bezos has long spoken about the country’s potential, predicting that the 21st century will be India's time to shine. Trump’s pro-business stance could provide Amazon with much-needed regulatory support as it looks to navigate India’s complex market, particularly in areas like e-commerce, where it has faced scrutiny over practices like deep discounting and preferential treatment in its joint ventures with Indian companies.

The Trump administration’s potential to ease regulatory hurdles could be beneficial for Amazon Web Services (AWS), which competes with local and global cloud providers in India. As Amazon continues to invest in the Indian market, a friendlier regulatory climate under Trump could help resolve issues with the Competition Commission of India (CCI), which has investigated Amazon’s practices in the country. While Bezos did not take an active political stance during Trump’s campaign, his post-election message congratulating Trump on his "extraordinary political comeback" indicates that Bezos is ready to work with the new administration if it offers advantages for American companies in India.

The changes ushered in by Trump’s return could have ripple effects across India’s telecom and e-commerce sectors. For India’s leading telecom providers, Reliance Jio and Bharti Airtel, the rise of satellite broadband services like Starlink could pose a direct threat. With the U.S. potentially pressuring India for more favorable treatment of American companies like SpaceX, these local telecom giants may face growing competition from Musk’s satellite internet offering.

Similarly, Amazon’s strengthening position under the Trump administration could lead to stiffer competition for homegrown e-commerce platforms like Flipkart. A less restrictive regulatory environment would enable Amazon to expand its operations in India more aggressively, potentially reshaping the competitive dynamics in the Indian market. With Trump’s support, Amazon could also gain an edge in sectors like cloud computing and digital payments, areas in which it already has a strong presence but faces stiff competition from local firms.

The re-election of Donald Trump could open new opportunities for Elon Musk and Jeff Bezos in India, both of whom have significant plans to expand their businesses in the country. Whether through easing regulatory burdens, facilitating market entry for Tesla and Starlink, or enabling Amazon to strengthen its foothold, Trump’s policies could provide much-needed momentum for these billionaires' India ambitions. For India, this means more competition, potentially lower prices, and more innovation as U.S.-based companies gain ground in one of the world’s most dynamic markets.

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