Musk punishes Ukraine: how exposed is India to foreign tech? | Explained

Elon Musk, the U.S. space tycoon, reportedly imposed restrictions on military-grade Starshield network services provided by his company SpaceX to Ukraine, in response to Ukraine's attacks on Russian oil infrastructure. This move highlights the risks associated with India's reliance on foreign-controlled technology, including satellite navigation, cloud computing, and military equipment.

A similar incident occurred in 2022, but SpaceX disputed media reports at that time. The Indian government and industry have thus far resisted Starlink's entry into the market, but Musk remains unhappy and likely to continue pushing. India currently relies on three companies – Starlink, Eutelsat OneWeb, and Jio Satellite Communications – for satellite communications, none of which have received the necessary security clearance to offer broadband services.

While India's critical infrastructure is exposed to services provided by foreign operators, it still has incentives to substitute them with homegrown alternatives. The worst-case scenario would involve a foreign operator directly restricting a continuing service, with other possibilities including disruption of access from foreign-controlled platforms or degradation of India's ability to sustain important capabilities by foreign suppliers.