Sridhar Vembu Says India’s Low-Cost Rocket Startups Could Challenge SpaceX

Zoho co-founder and Chief Scientist Sridhar Vembu has said Indian startups are making significant progress in developing low-cost rockets, potentially creating competition for Elon Musk’s SpaceX, much as Chinese electric vehicle makers have challenged Tesla.

In a post on X on Saturday, Vembu attributed the progress to policy initiatives under Prime Minister Narendra Modi’s government, responding to a post by SpaceX founder Elon Musk.

“Directly due to Prime Minister Narendra Modi's government policy, Indian startups are making major advances in low-cost rockets and that poses a threat to SpaceX in the same way the Chinese EVs threaten Tesla,” Vembu wrote.

He also highlighted India’s affordable medicines, low mobile data costs and digital payment infrastructure, citing the Unified Payments Interface (UPI) as an example of how cost-effective services can be developed at scale.

Vembu said India has some of the lowest medicine prices globally and noted that visitors increasingly buy medicines during their trips to the country to take back home.

He credited the government’s economic policies with encouraging competition and expanding opportunities for businesses, arguing that the benefits should reach ordinary citizens.

“Prime Minister Narendra Modi has worked hard to create a competitive economy where the benefits flow to the average Indian,” Vembu wrote, adding that the government did not tolerate monopolies.

He also pointed to the growth of startups as a sign of competition in the economy.

Highlighting India’s low telecommunications costs, Vembu said affordable mobile data allows people to use large data plans and rely on mobile hotspots rather than local Wi-Fi when travelling.

In a separate post on Friday, the Zoho co-founder discussed the contributions of Indians to the US technology sector while expressing concern over the uncertainty faced by Indian professionals living in the country on visas.

“A big part of America no longer wants us,” Vembu wrote, referring to concerns about the future of Indians who have built their lives and careers in the United States.