The Ambani paradox: Pressured by Musk, courted by Washington

In the space of two weeks, Mukesh Ambani became the focus of two contrasting American approaches to India. Elon Musk publicly questioned his influence while seeking regulatory clearances for Starlink’s satellite internet services. Days later, US Secretary of State Marco Rubio visited Reliance Industries’ Jamnagar refinery complex to explore opportunities in refining, energy and emerging clean-energy businesses.

The contrast reflects a larger strategic reality. Ambani’s importance to Washington extends beyond his wealth and political clout. His companies control assets critical to India’s energy security, digital infrastructure and consumer economy. They also offer American businesses opportunities in one of the world’s largest markets. As Washington recalibrates its economic engagement with India, Reliance has emerged as a consequential player.

The Musk episode exposed the tensions surrounding this position. The Jamnagar visit demonstrated why American policymakers continue to engage with Ambani.

Musk complained that Starlink had spent five years complying with Indian regulatory requirements without obtaining all the approvals needed to launch commercial services. He questioned whether Ambani was behind the delay, implying that the Reliance chairman might be obstructing Starlink’s entry into India.

Communications Minister Jyotiraditya Scindia rejected the suggestion that India would allow monopolies in any sector. He said three licensee agencies had received licences, while security conditions remained to be finalised. Starlink, Reliance Jio’s satellite internet venture and Bharti-backed Eutelsat OneWeb had secured licences, but further approvals were necessary before commercial services could begin.

Reliance’s response was pointed: “We have never feared competition.” The company also noted that its own satellite venture was awaiting clearances, suggesting that the regulatory process was not directed at Starlink alone.

Starlink received a five-year licence from India’s space regulator in 2025 but still required spectrum allocation and security-related approvals. It had also signed distribution agreements with Jio and Airtel in March 2025, illustrating how competition and commercial cooperation could coexist.

In September 2026, the Digital Communications Commission approved most of the Telecom Regulatory Authority of India’s recommendations on satellite spectrum allocation. These included five-year spectrum assignments, extendable by two years, and a revenue-linked spectrum fee. Cabinet approval on spectrum pricing and allocation, along with the required clearances, remained necessary for commercial rollout.

Starlink subsequently softened its public stance, saying it had worked with Indian regulators and industry for more than five years and had built dedicated systems, gateways and other infrastructure. “Starlink is ready to connect India with high-speed internet,” the company said.

Within days, the setting changed dramatically. On October 21, Rubio toured Reliance’s Jamnagar refinery complex alongside US Ambassador Sergio Gor and members of the Ambani family. The significance lay in the industrial capacity Washington wanted to engage with.

Jamnagar is the world’s largest single-site refining complex, with two refineries offering a combined crude-processing capacity of about 1.4 million barrels per day. Its deep-conversion capabilities allow Reliance to process more than 216 grades of crude oil from across the world, providing flexibility in sourcing feedstock and responding to shifts in global markets.

Rubio praised India’s refining capabilities and discussed opportunities to process Venezuelan crude, according to sources. “The visit also covered Reliance’s emerging clean-energy manufacturing facilities and data-centre ambitions,” an executive said. According to the US Embassy, the discussions aimed to deepen US-India energy and commercial cooperation. Rubio also met business leaders from the Adani and Tata groups to explore trade and investment opportunities.

The timing mattered. With US fuel prices under pressure ahead of the midterm elections and the conflict involving Iran complicating the energy outlook, Washington had reasons to strengthen its engagement with major refining and energy companies. Reliance’s scale and ability to process different crude grades made it a natural partner.

Gor also highlighted a proposed Reliance-backed refinery project in Texas, described as the first new US refinery in about 50 years. If realised, it would extend the relationship beyond crude purchases and refined-product trade.

Russia adds another dimension. Reliance had been a major buyer of Russian crude, using its refining capacity to process oil and sell petroleum products globally. Following US sanctions on Russian producers Rosneft and Lukoil, the company said it would stop processing Russian crude at its export-oriented refinery. Its ability to adjust sourcing as restrictions change is relevant to Washington’s efforts to reshape global energy flows.

The diplomatic engagement also comes as President Donald Trump says a new India-US trade agreement is “pretty close”, describing it as a “much different kind of deal” from previous American trade agreements. Rubio has indicated that most of the work is complete, although some issues remain unresolved. The agreement has yet to be finalised.

For Ambani, a trade deal could support ambitions extending beyond petroleum and telecommunications. Reliance is building export platforms across consumer products, retail and new energy, seeking to turn its domestic scale into an international growth engine.

At Reliance’s annual general meeting, Ambani outlined manufacturing and export plans for Reliance Retail and Reliance Consumer Products, spanning beverages, daily essentials, fresh produce, garments and affordable electronics. Supplier partnerships across 21 manufacturing clusters are intended to support garment production, while the consumer-products business is expanding overseas. Reliance Consumer Products, which grew to ₹22,000 crore in revenue in just three years of operation, is present in more than 40 countries through exports and franchise sales.

New energy is another bet targeting international markets, including the US. Reliance is developing an integrated manufacturing ecosystem at Jamnagar linking solar modules, batteries, electrolysers and green fuels. It targets three million tonnes a year of green-hydrogen-equivalent capacity by 2032, with green ammonia, green methanol and sustainable aviation fuel among its potential export products.

US investors already have a substantial presence in Reliance’s businesses. When Jio Platforms raised capital in 2020, Facebook acquired a 9.99% stake for about $5.7 billion. Google, which holds a 7.73% stake, and investment firms including Silver Lake, KKR, General Atlantic, TPG and Vista also invested. Gulf sovereign wealth funds joined the investor base, and several financial investors subsequently backed Reliance Retail.

In short, Reliance’s assets and diversified portfolio have given it an edge, positioning it as a formidable domestic incumbent and a credible international partner.