Regulation

Starlink faces more delays in India over FDI and security concerns

Starlink faces more delays in India over FDI and security concerns

LEO satellite broadband operator Starlink is reportedly facing more regulatory hurdles in India related to foreign direct investment (FDI) and national security that could further delay its commercial launch in the country.

Starlink has already obtained a GMPCS licence to offer satellite communications services in India, as well as authorisation from the Indian National Space Promotion and Authorization Centre (IN-SPACe). It's already signed reseller deals with Reliance Jio and Bharti Airtel.

However, as a 100% foreign-owned company, Starlink must receive FDI clearance from the government, as well as security clearance, before it can acquire the necessary spectrum from the Department of Telecommunications (DoT) to start operations.

According to a report from ETTelecom on Saturday, citing “people aware of the details”, Starlink’s FDI application has been put on hold over concerns about cross-holding of its parent company SpaceX.

While SpaceX is a private company, its ownership structure is complex, with Elon Musk owning 42% equity, while Alphabet, Fidelity Investments, Founders Fund and Sequoia Capital have also invested in the company. Musk’s EV company Tesla also owns a small stake in SpaceX via the latter’s buyout of Musk’s AI company xAI earlier this year.

Complicating matters is the news earlier this month that SpaceX has filed for an IPO with a valuation target of US$1.75 trillion. According to Reuters, SpaceX plans to kick off an IPO roadshow as early as June this year.

Meanwhile, the volatile situation in the Middle East – as well as reports that Starlink terminals were being used in Iran despite being banned – has raised fresh concerns from the Indian government on how Starlink’s network could be misused in national security situations, the ETTelecom report said.

The DoT has been concerned about the security implications of broadband satellite for some time, particularly in light of India’s ongoing tensions with China and Pakistan. In May 2025, it issued a list of additional security requirements that GMPCS licence holders offering satellite broadband services have to fulfil.

Starlink still has the opportunity to address those concerns. Senior Starlink executives are expected to meet commerce ministry officials later this month or early May to discuss the company’s FDI proposal, the report added.



More Articles you may be Interested in...