Modi’s actions have long been driven by a deep-seated inclination to bolster allies, and now, as he extends his influence to his ‘other’ friend Donald Trump and his business circle, the telecom sector is witnessing an unexpected realignment. The adage that a friend’s friend is one’s own friend and a friend’s enemy is an enemy finds a clear expression in this development. The sudden shift in the stance of India’s telecom giants, Bharti Airtel and Reliance Jio, from opposition to alliance with Starlink, underscores the extent to which personal relationships and political considerations are shaping critical business decisions.

Elon Musk, a figure synonymous with disruptive innovation, has shown an unmistakable ambition to tap into the lucrative Indian market, despite his lack of demonstrated affinity for Indians. His relationship with India has been largely transactional, driven by economic incentives rather than cultural or strategic interest. Nevertheless, his entry into the Indian telecom landscape through Starlink marks a turning point, facilitated by an unusual partnership with Airtel and Jio—two companies that had previously resisted Starlink’s presence in India. Their opposition was well-founded, rooted in concerns over regulatory hurdles, market competition, and the potential upheaval posed by satellite-based internet services. That they have now entered into an agreement with Starlink is an astonishing turnaround, one that raises pressing questions about what, or who, prompted this change. The single most influential variable in this equation appears to be Modi.

Modi’s role in orchestrating this shift cannot be overstated. His camaraderie with Donald Trump is not merely symbolic; it is a strategic alliance that extended beyond political optics into economic and business domains. With Trump’s associates wielding influence over enterprises like Starlink, Modi’s facilitation of Starlink’s entry into India can be seen as a continuation of his personal brand of diplomacy. The shift in Airtel and Jio’s position appears less like a business decision and more like a political manoeuvre, one that aligns with Modi’s broader strategy of aligning India’s economic future with select global players who share political and ideological ties with his administration.

The implications of this alliance are vast, particularly for Indian consumers, whose interests are at risk of being sidelined in the process. India has built a reputation for offering some of the lowest data rates in the world, a development that has played a crucial role in the country’s digital revolution. Affordable internet access has democratized information, empowered millions, and fostered innovation across sectors. However, Starlink’s entry is poised to disrupt this equilibrium. Unlike traditional telecom providers, Starlink’s offerings come at a premium, justified by the high costs associated with satellite-based services. This significant price differential is bound to have cascading effects, with Airtel and Jio likely to recalibrate their pricing strategies in response to Starlink’s presence. The net result is an inevitable hike in data rates across the board, making connectivity more expensive for the average consumer.

The argument that Starlink’s satellite technology provides unique advantages, such as connectivity in remote and underserved regions, does not fully compensate for the downsides of its integration into the Indian market. While the promise of expanded coverage is appealing, it comes with trade-offs that have been largely overlooked in the current discourse. The increased costs associated with Starlink’s services could exclude vast sections of the population from accessing high-speed internet, exacerbating the digital divide. India’s telecom sector has thrived on affordability, and a shift towards costlier internet plans could reverse years of progress in digital inclusivity. This raises concerns about whether Modi’s facilitation of Starlink’s entry is truly driven by national interest or if it is, as critics suggest, yet another example of his tendency to prioritise relationships over public welfare.

From a market dynamics perspective, the partnership between Starlink and India’s two dominant telecom players creates an unusual competitive scenario. Airtel and Jio, which collectively control around 80 percent of India’s telecom market, now stand to benefit from Starlink’s presence rather than be threatened by it. This signals a move towards potential market consolidation, where price competition is dampened in favour of strategic alliances. With limited competition in the sector already, the entry of Starlink under such circumstances does not enhance consumer choice; rather, it sets the stage for coordinated price adjustments that disadvantage users. What makes this particularly concerning is that this realignment was not driven by natural market forces but appears to have been engineered through political intervention.

The geopolitical ramifications of this development also warrant scrutiny. Starlink, as part of Elon Musk’s broader SpaceX enterprise, operates in a space that intersects with global strategic interests. The expansion of its footprint in India is not merely a business move; it carries implications for data sovereignty, regulatory control, and national security. Satellite-based internet services operate outside the conventional regulatory framework that governs traditional telecom networks, raising concerns about oversight and data governance. Given Modi’s emphasis on self-reliance and digital sovereignty, the facilitation of a foreign-controlled satellite service contradicts his previously stated vision of an India-first approach in technological infrastructure. It also suggests that his strategic calculus in this case is less about national security and more about catering to external alliances.

The broader question that emerges from this episode is whether Modi’s style of diplomacy, characterized by personal affiliations and transactional alliances, serves India’s long-term interests. While fostering relationships with global business leaders is not inherently problematic, the extent to which these relationships influence policy decisions is a cause for concern. In the case of Starlink, the direct beneficiaries of this development appear to be Musk, Airtel, and Jio, while the ordinary Indian consumer faces the prospect of higher costs and reduced market competitiveness. This follows a pattern seen in other sectors where Modi’s close ties with industrialists have shaped policy in ways that have benefited select players at the expense of broader economic equity. (IPA Service)