'Use Starlink as bargaining chip': Raghav Chadha proposes using Starlink to negotiate Trump tariffs, Jyotiraditya Scindia responds

AAP MP Raghav Chadha on Thursday suggested using Elon Musk's Starlink as leverage to counter Donald Trump's 27% tariffs on Indian goods, citing potential GDP impact.

As the US President Donald Trump imposed reciprocal tariffs of 27 per cent on Indian exports,  Aam Aadmi Party (AAP) MP Raghav Chadha on Thursday urged the Centre to leverage Elon Musk's Starlink satellite internet services as a "bargaining chip" to renegotiate the tariffs. 

During the Question Hour in the Rajya Sabha, Chadha raised concerns regarding the potential impact of US tariffs on the Indian economy. He suggested that the tariffs could result in a GDP loss for the country ranging from 50 to 100 basis points.

Chadha argued that withholding the necessary approvals for Starlink could serve as a strategic countermeasure against the tariffs. He questioned, "Should we not withhold the requisite approvals for Elon Musk's Starlink who is the visible part of the US administration and use that as a bargaining chip to renegotiate the Trump tariffs?" 

The AAP MP asserted that despite India demonstrating unwavering loyalty and friendship towards the US, the Trump administration has implemented steep tariffs that have the potential to severely impact the Indian economy.

"India rolled out the red carpet for the US, but in return, we got tariffs," he said, and sang a few lines of the Bollywood song 'Accha sila diya tune mere pyaar ka, yaar ne hi loot liya ghar yaar ka..."

He also pointed out that last week the finance minister moved an amendment to remove the 'Google tax' -- an equalisation levy of 6 per cent on US companies like Meta and Amazon -- causing India a loss of Rs 3,000 crore.

Last month, Reliance Jio and Bharti Airtel entered into agreements with SpaceX to distribute Starlink’s satellite internet services in India. Under the terms of the deals, Starlink’s equipment will be sold through Jio and Airtel’s retail networks, with Jio providing customer service, installation, and activation support.

The partnership will specifically target providing high-speed internet to businesses, schools, healthcare centers, and remote communities throughout India.

However, these agreements are dependent on receiving regulatory approval. SpaceX is currently awaiting government permission to officially launch Starlink’s services in the country.

In response to Chadha's proposal and concerns, Communications Minister Jyotiraditya Scindia emphasised a consumer-centric approach, stating, "I am company agnostic, I am citizen-centric," while outlining the government's role in ensuring cutting-edge technology for Indian consumers. Scindia stressed that any provider meeting the regulatory requirements, "the doors of India are open to you. The customer will decide which provider they want to go with," thereby highlighting the competitive telecom market in India. 

Scindia emphasized the government's commitment to providing advanced technology to Indian consumers with stringent security measures. "My responsibility is to offer every available technological opportunity to every citizen in the nation." The minister also mentioned that two Indian companies, Reliance and Bharti Airtel, have been granted licenses for satellite technology. Additionally, both companies have recently entered into agreements with SpaceX to introduce Starlink services in India, pending regulatory clearance.

"If you are able to satisfy all those requirements which are same for every provider of satellite communications, the doors of India are open to you. The customer will decide which provider they want to go with," the minister added.

Minister of State for Communications Chandra Shekhar Pemmasani addressed misconceptions about Starlink by highlighting India's superior terrestrial broadband speed, which is 188 times faster than any satellite-based service like Starlink. He pointed out that Starlink's global customer base of 46 lakh in three years is significantly smaller than India's 990 crore broadband connections.

Pemmasani went on to outline security measures for satellite communication providers, including the requirement for earth station gateways in India, operational control centres on Indian soil, and the routing of all traffic for Indian customers through domestic gateways.

Highlighting India's position as the world's most affordable telecom market, the minister emphasized that data costs in the country are only 11 cents per GB, compared to the global average of USD 2.59. This affordability makes India an appealing destination for global data business ventures.