With Donald Trump returning to the White House, there will be a lot of changes for American companies looking to expand their businesses to India. Ambitions of electric vehicles, satellite broadband, e-commerce, and cloud computing of Elon Musk and Jeff Bezos could be easily helped. It’s possible through his pro-business stance by creating a conducive regulatory environment that may provide them an upper hand against the India titans, such as Mukesh Ambani’s Reliance Jio and Sunil Mittal’s Bharti’s Airtel.

A Trump-Driven Opportunity for Musk and Bezos

India might look more favourably to Musk and Bezos if and when Trump returns to the White House. Unlike China, India has kept both on its toes with regulatory uncertainties. The electric vehicle market, which Musk and Tesla have been eager to venture into, remains beyond their reach due to high import duties and other regulatory hurdles.

Similarly, the local telecom players did not let Starlink’s satellite internet initiative off so easily and preferred an auction-based spectrum allocation. Trump has an overtly business-friendly attitude, and Musk is his close friend. So, it would be easier and smoother access would be granted to enter India’s market.

It will be interesting to note how, for Bezos, Trump’s pro-American business policies can help Amazon navigate India’s regulatory complexities, particularly around issues with the Competition Commission of India (CCI). Amazon’s market expansion in India has not been without criticism on account of alleged preferential practices and deep discounting.

However, a shift in regulations that Trump would support would largely ease some of the pressure mounting. This would otherwise make it difficult for Amazon to gain better strength in India’s rapidly booming e-commerce landscape.

Musk’s Strategic Advantage with Trump

Elon Musk’s relationship with Trump, highlighted by his substantial support during Trump’s campaign, marks a unique advantage for Musk in India. Trump’s anti-business approach to companies is akin to Musk’s corporate approach to Indian markets for Tesla and Starlink.

Crucially, Tesla’s entry into the Indian market has been grounded in the high import duty on electric vehicles, against which Musk has been arguing that it is against growth. From this viewpoint, Trump’s victory would mean lower import tariffs or regulatory incentives. This would make it relatively easier for Tesla to start a business and even establish manufacturing in the country.

Musk’s venture, Starlink, which targets providing satellite broadband to rural Indian areas, has received pushback of regulatory type from telecom companies like Ambani and Mittal leaders. They have reportedly been pushing for spectrum allocation by competitive auctions.

The pro-American bias of Trump may influence Indian policymakers to favour a more amenable regulatory model for Starlink, allowing even an administrative allocation of satellite spectrum. This will be consistent with global practices since administrative allocation proves easier than auctions with such low costs that Musk and other satellite operators favour it.

Bezos’s Cautious but Strategic Approach

Unlike the vocal supporters of Trump, Jeff Bezos kept a low profile while the campaign was on. That is perhaps his neutrality on media through The Washington Post. However, Trump’s pro-business plans may help Amazon to operate in India. Amazon has aggressively invested in all the e-commerce, digital payment, cloud computing, and entertainment verticals. It believes India offers a substantial market outside the U.S.

A Trump win could ease the regulatory pressures on Amazon, particularly regarding CCI investigations. They have been one of the important barriers to Amazon’s entry into India. An American business-friendly environment for Bezos would translate to fewer regulatory hurdles and greater elbow room in pushing for aggressive competition within the burgeoning digital economy of India. Bezos has described the country’s growth prospects as pivotal for Amazon’s global expansion.

Impact on India’s Telecom Sector: Challenges for Reliance Jio and Bharti Airtel

The ease with which Musk’s Starlink would be administered regulatory easement would alter the landscape of India’s telecom industry. India’s leading telecom firms, Reliance Jio, and Bharti Airtel, had been lobbying for a competitive auction model for satellite spectrum allocation. According to them, just like traditional telecom firms pay a fee for using spectrum, satellite companies should also pay a fee for using spectrum.

However, Starlink and Amazon Kuiper have been pushing for an administrative allotment till low entry barriers and costs. The recent move by India regarding reliance on administrative spectrum allotment aligns with any possible leverage by Trump for U.S. companies. This makes it even more difficult for Jio and Airtel to make the case for an auction model.

The Road for Tesla to the Indian Electric Vehicle Market It is said that Tesla’s entry might again shake the local market, which remains dominated mainly by Tata Motors and Mahindra.

Broader Implications for India’s Market

As US companies inch closer to a more settled footing in India, Indian companies would have to navigate this new situation by either getting aligned with the global giants or increasing lobbying efforts. For Musk and Bezos, Trump’s return is an excellent opportunity to realise long-pursued fantasies in India. In comparison, Ambani and Mittal might have even tougher times as competition backed by a U.S.-friendly administration tests their market strength.