Burning Musk, courting Canada: India hedges in the tariff era

# Starlink Dispute and India-Canada Trade Talks Highlight New Delhi’s Push to Protect Economic Independence

India has presented two contrasting developments within the same fortnight: protests against billionaire Elon Musk and his Starlink satellite internet venture, and renewed efforts by New Delhi and Ottawa to reach a major trade agreement. Although the events appear unrelated, both reflect a larger question about how India intends to shape its economic future while balancing foreign investment, national security and international partnerships.

One controversy involves Starlink’s prolonged wait for regulatory approval to operate in India. The other concerns a proposed India-Canada trade pact that Prime Minister Narendra Modi is expected to sign during a possible visit to Canada in December. Together, they illustrate India's efforts to expand international economic relationships without allowing external pressure to determine domestic policy.

## The Musk-Starlink Controversy

Starlink has been seeking permission to provide satellite internet services in India since 2022. Frustrated by the delay, Musk recently criticized what he described as protection for powerful business interests. He accused unnamed oligarchs of maintaining a monopolistic grip on the market, questioned on X whether Mukesh Ambani was effectively controlling India, and later addressed a mock letter to “Prime Minister Ambani.”

India's Communications Ministry rejected the allegations, describing them as baseless and maintaining that the country's regulatory framework was fair and non-discriminatory. A junior minister said the delay was linked to a security assessment by the Home Ministry rather than a decision targeting any particular company.

The dispute quickly became political. Opposition leader Rahul Gandhi responded to Musk with the comment, “Welcome to India, Elon. Wait till you discover the other guy,” referring to his longstanding criticism of the relationship between the government and major business groups. Musk thanked Gandhi for the response.

Actors and political leaders from different backgrounds also weighed in. Kamal Haasan and Asaduddin Owaisi questioned the appropriateness of a foreign billionaire commenting on India's domestic affairs. Owaisi also asked why the BJP was not responding more forcefully to Musk's remarks.

## National Security and Domestic Business Interests

The Hindu nationalist movement subsequently became involved in the controversy. On October 13, the Swadeshi Jagran Manch (SJM), the economic wing associated with the Rashtriya Swayamsevak Sangh (RSS), called on the government to prevent Starlink from entering India, citing national security concerns. The organization also connected its opposition to pressure from the United States over tariffs on Indian exports.

On October 23, SJM members reportedly staged a demonstration in New Delhi, raising the slogan “Elon Musk Bharat chhodo.” A DRM News report also claimed that members of the movement burned an effigy of Musk in Madhya Pradesh. However, the reported incident has not been independently confirmed by another outlet, so those details remain provisional.

The arguments surrounding Starlink reflect two competing concerns. Critics point to the dominance of Reliance Jio and Bharti Airtel, which together account for more than 80% of India's broadband subscribers, and question whether regulatory delays are preventing another competitor from entering the market.

The government and SJM, meanwhile, emphasize the security implications of satellite-based communications. Unlike conventional terrestrial networks, satellite services may be more difficult for governments to disable during emergencies or security situations.

Musk's own record has also become part of the debate. His social media platform X has challenged Indian government takedown orders in court, while also complying with orders to block thousands of accounts. Starlink's role in Ukraine, where satellite connectivity has had strategic importance, is another example cited by opponents who argue that the technology could carry national security implications.

## India and Canada Move Toward a Trade Agreement

While the Starlink dispute has attracted public attention, India and Canada are pursuing a different path through renewed economic engagement.

The two countries have completed five rounds of negotiations for a Comprehensive Economic Partnership Agreement (CEPA), which aims to increase bilateral trade to approximately $70 billion by 2030. India's high commissioner has expressed confidence that the agreement could be finalized before Modi's expected December visit to Canada. However, negotiations have not yet resulted in a signed deal.

The progress marks a significant change after nearly two years of diplomatic tensions. In August 2025, the governments of Canadian Prime Minister Mark Carney and Modi restored their high commissioners. Negotiations were relaunched in November of that year.

Canada's renewed interest in India is also connected to its efforts to diversify international trade. Ottawa has indicated that the changing U.S. trade environment, particularly President Donald Trump's tariff policies, has encouraged it to strengthen commercial relationships beyond the American market.

The proposed agreement therefore represents an effort by both governments to reduce dependence on a single major trading partner and create additional opportunities for businesses.

## A Common Theme: Economic Hedging

The Starlink controversy and the Canada negotiations share a broader economic theme: India's effort to maintain strategic flexibility in an increasingly uncertain global trading environment.

Trump's tariffs provide an important backdrop to both developments. They have encouraged Canada to explore new markets while also giving Indian nationalist groups another reason to oppose a U.S.-based technology company.

India continues to seek American investment, technology and business partnerships, but it also wants to establish the conditions under which foreign companies can operate. At the same time, expanding trade relationships with Canada and other countries could help reduce dependence on any single international market.

This approach offers potential advantages, but it also involves difficult choices. Greater competition in satellite internet could benefit rural communities and regions with limited connectivity. However, if Starlink's entry is delayed for political rather than clearly established regulatory reasons, it could raise questions about the consistency of India's business environment.

## Three Developments to Watch

The next stages of both developments will provide a clearer picture of India's approach. The first is whether the Home Ministry completes its security review and whether Starlink receives the necessary approvals. The second is whether India and Canada finalize and sign their proposed trade agreement during Modi's expected December visit. The third is whether Washington responds to either development as trade and technology tensions continue.

The protests surrounding Musk may fade quickly, but the decisions involving satellite internet licences and international trade agreements could influence India's economic relationships for years. Ultimately, the challenge for New Delhi will be to protect national security and domestic interests while maintaining a predictable environment for competition, investment and international cooperation.