US 25% Tariff Impact on Indian Markets: Sectors to Watch in 2025

  The announcement of a 25% tariff on Indian exports to the United States, effective August 1, 2025, has sent ripples through Indian markets. With the US being India’s largest trading partner, accounting for approximately $87 billion in exports, this move could significantly affect key sectors. While some industries face substantial challenges, others are likely to remain resilient. Below, we analyze the sectors with maximum and minimum impact from the US tariff hike, offering insights for investors and businesses navigating this new trade landscape. Sectors Facing Maximum Impact 1. Gems and Jewellery: A Major Blow India’s gems and jewellery sector, a cornerstone of its export economy, is highly exposed to the US market, which accounts for nearly 30% of its $12 billion in annual exports. The 25% tariff could inflate prices, reduce demand, and disrupt supply chains, threatening livelihoods and profit margins. Industry leaders warn of potential job losses and urge diversification int...
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Satellite Communications: A Game-Changer for Disaster Management and BSNL’s Profitability

 

In an era where connectivity is paramount, satellite communications (satcom) have become a critical lifeline, particularly during disasters and natural calamities. In India, with its diverse terrains and frequent natural events, satcom ensures seamless communication when traditional telecom infrastructure fails. Bharat Sanchar Nigam Limited (BSNL), the state-owned telecom provider, has pioneered direct-to-device (D2D) satellite services in partnership with Viasat, while Elon Musk’s Starlink has entered the Indian market with its satellite internet license in 2025. This blog explores the pivotal role of satellite communications in disaster management and analyzes its impact on BSNL’s profitability, amidst competition from Starlink, in a year marked by BSNL’s remarkable financial recovery.

The Role of Satellite Communications in Disaster Management

Satellite communications offer a reliable solution when terrestrial networks are disrupted by floods, earthquakes, or cyclones. Unlike cellular networks reliant on ground-based towers, satcom delivers connectivity directly to devices via orbiting satellites, bypassing damaged infrastructure. This is vital in India, where remote areas like the Spiti Valley or disaster-prone regions often lack consistent coverage.

BSNL’s D2D satellite service, launched in November 2024 with Viasat’s L-band satellite constellation, enables two-way messaging, emergency calls, and UPI payments in areas without cellular or Wi-Fi access. Showcased at the India Mobile Congress 2024, this service supports SOS messaging and disaster recovery, ensuring connectivity for first responders and affected communities. Similarly, Elon Musk’s Starlink, with its low-earth orbit (LEO) satellite network, provides high-speed internet to remote areas, enhancing disaster response capabilities. However, Starlink’s requirement for specialized hardware contrasts with BSNL’s device-agnostic approach, making the latter more accessible for widespread use during emergencies.

BSNL’s Financial Turnaround in 2025

BSNL reported back-to-back quarterly profits for the first time in 18 years, with ₹262 crore in Q3 FY25 and ₹280 crore in Q1 FY25. Driven by cost-cutting, infrastructure leasing, and a focus on 4G expansion, BSNL’s operating revenue grew 7.8% to ₹20,841 crore, with wireless services contributing ₹7,499 crore and broadband/internet services adding ₹7,019 crore. The subscriber base expanded to 91 million by August 2024, fueled by competitive pricing and innovative services like D2D satellite connectivity.

Impact of Satellite Communications on BSNL’s Profitability

1. New Revenue Streams

BSNL’s D2D satellite service taps into underserved rural and remote markets, offering affordable connectivity plans. By enabling digital transactions like UPI payments, it increases average revenue per user (ARPU) in regions prioritizing digital inclusion. While BSNL has not clarified whether D2D will be bundled with existing plans, flexible pricing could drive adoption. In contrast, Starlink’s high-cost model (₹30,000 for a satellite dish and ₹3,000 monthly fees) targets niche markets, limiting its reach to approximately 2 million users, as noted by Union Minister Pemmasani Chandra Sekhar. BSNL’s cost-effective D2D service positions it to capture a larger market share.

2. Competitive Edge Against Starlink and Others

India’s telecom market is fiercely competitive, with Reliance Jio (490 million subscribers) and Bharti Airtel (362 million) leading the pack. Elon Musk’s Starlink, granted a satellite internet permit in 2025, introduces new competition with its high-speed, low-latency internet. However, Starlink’s hardware costs and subscription fees make it less accessible to price-sensitive consumers. BSNL’s D2D service, requiring no specialized equipment and leveraging existing smartphones, offers a competitive alternative, appealing to both rural users and disaster management agencies.

3. Cost Efficiency and Infrastructure Synergies

BSNL’s partnership with Viasat utilizes existing L-band satellite spectrum, minimizing regulatory and infrastructure costs. This aligns with BSNL’s deployment of 100,000 indigenous 4G towers by mid-2025, optimizing costs through integrated satellite and terrestrial networks. Starlink, while innovative, requires significant investment in ground terminals and satellite launches, which BSNL avoids by leveraging Viasat’s established infrastructure, enhancing profitability.

4. Public Service and Government Support

As a public-sector entity, BSNL’s D2D service aligns with initiatives like Digital Bharat Nidhi, promoting rural connectivity. Its role in disaster management strengthens its case for government funding, following over ₹3 lakh crore in revival packages since 2019 and the merger with Bharat Broadband Network Limited (BBNL). Starlink, as a private entity, lacks such governmental backing, giving BSNL a strategic advantage in securing resources to sustain its financial recovery.

Challenges to Consider

BSNL’s D2D service faces challenges, including fragmented standards and limited commercial viability for mass-market smartphones. Starlink’s entry, though limited by cost, could attract high-value customers, pressuring BSNL to innovate. To maintain profitability, BSNL must address these hurdles through technological advancements and competitive pricing while capitalizing on its public-sector strengths.

Conclusion

Satellite communications, driven by BSNL’s D2D service and Elon Musk’s Starlink, are revolutionizing India’s connectivity landscape, ensuring communication during disasters and bridging the digital divide. For BSNL, satcom has bolstered profitability in 2025 through new revenue streams, a competitive edge, and cost-efficient infrastructure. Despite challenges from Starlink’s high-speed offerings, BSNL’s accessible, device-agnostic approach positions it as a leader in inclusive connectivity. With government support and strategic partnerships, BSNL’s satellite initiatives are set to drive a connected, resilient future for India.

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