How Musk’s Starlink Can Propel India to a $1 Trillion Digital Economy
Starlink’s entry into India could not only strengthen the country’s position as a global digital leader but also enhance e-governance capabilities.
Elon Musk’s satellite internet company, Starlink, is set to play a transformative role in India’s digital evolution. After years of regulatory challenges, Starlink has secured key partnerships with Bharti Airtel and Jio Platforms, marking a major milestone in its entry into the Indian market.
Under these agreements, SpaceX will distribute its satellite communication equipment through Jio and Airtel’s retail and online channels, potentially revolutionizing internet accessibility across the country.
A Game-Changer for India’s Connectivity
While these collaborations await regulatory approval, they represent a significant shift in how India’s telecom leaders—Sunil Bharti Mittal’s Airtel and Mukesh Ambani’s Jio—approach satellite communication spectrum allocation. Previously advocating for spectrum auctions, both firms have since adapted to the Indian government’s decision to allocate satellite spectrum directly, aligning with global best practices.
This decision reflects India’s broader ambition to ensure universal internet access, particularly in underserved and rural regions.
“With the internet becoming increasingly essential and the next 400 million users likely coming from semi-urban and rural areas, ensuring equitable access is crucial”, stated Rajeev Chandrasekhar, former Minister of Electronics and Information Technology. These new users are expected to be key drivers of India’s digital economy, fostering opportunities and technological advancements.
Reaching the $1 Trillion Milestone
India’s digital economy is projected to account for 20% of its Gross Domestic Product (GDP) by 2029-30, reaching an estimated $1 trillion.
Starlink’s advanced satellite internet services could accelerate this vision by delivering connectivity to remote areas where traditional infrastructure—such as mobile towers and optical fiber networks—is either impractical or cost-prohibitive. Regions like deserts, mountains, and isolated islands could gain seamless digital access, bridging the urban-rural digital divide.
“In India, despite over a billion cellular subscribers, large areas remain without reliable coverage. As one moves away from cities, network quality declines. Satellite connectivity can complement terrestrial networks to ensure complete and uninterrupted coverage”, said Faisal Kawoosa, Chief Analyst at TechArc.
Satellite communication (SATCOM), projected to grow into a $14.8 billion industry by 2033, will be instrumental in India’s broadband expansion.
“SATCOM will significantly enhance digital connectivity, especially in rural and underserved regions”, noted Pankaj Khurana, a partner at EY Consulting. He emphasized that Starlink’s technology could be a game-changer for government initiatives like BharatNet and Digital India, driving the country’s digital inclusion efforts forward.
Unlocking New Technological Possibilities
Starlink utilizes low-earth orbit (LEO) satellites positioned below 2,000 km, delivering high-speed internet for real-time communication across multiple devices. Currently, Starlink’s services are operational in over 113 countries, including the U.S., Malaysia, Kenya, and Bhutan, offering internet solutions across industries such as education, healthcare, and e-commerce.
Experts believe Starlink’s entry into India could not only strengthen the country’s position as a global digital leader but also enhance e-governance capabilities.
Following a high-profile meeting between Musk and Prime Minister Narendra Modi in Washington last month, along with support from Airtel and Jio, Starlink appears closer than ever to securing the necessary government approvals.
Beyond broadband, the technology holds promise for autonomous vehicles, logistics, and industrial automation. “For example, autonomous cars require continuous nationwide connectivity beyond urban centers. SATCOM ensures seamless coverage, making IoT and smart industries more viable”, Kawoosa added.
Challenges and the Road Ahead
Despite its potential, satellite communication in India is still an emerging sector. The government is in the process of finalizing regulatory frameworks, though the Indian Space Policy 2023 actively encourages private sector participation in space-based broadband services.
Airtel and Jio’s existing SATCOM infrastructures, developed in alignment with government policies, could facilitate Starlink’s entry while mitigating compliance concerns.
Another key consideration for Starlink’s success is hardware compatibility. Apple’s iPhones, which dominate India’s premium smartphone market, already support satellite services. Starlink recently partnered with T-Mobile to provide satellite internet to iPhones in the U.S., a strategy Airtel and Jio could potentially adopt in India. However, pricing remains a crucial factor.
Globally, Starlink’s services are significantly more expensive than conventional broadband and mobile networks. Striking the right balance in a price-sensitive market like India will be essential for widespread adoption.
If implemented strategically, Starlink’s entry could be a game-changer, propelling India toward its $1 trillion digital economy goal. By bridging connectivity gaps and expanding digital access, Musk’s satellite venture could become a cornerstone of India’s technological and economic advancement.
