Musk Voices Tariff Concerns Amidst India's Phone Monitoring Intensification

Elon Musk has once again voiced his concerns over tariffs, particularly those championed by former U.S. President Donald Trump, while India is tightening its grip on phone monitoring. These developments highlight the intersection of global trade, business, and individual privacy in an increasingly interconnected world.

In a recent podcast interview with Zerodha co-founder Nikhil Kamath, Musk reiterated his long-standing opposition to tariffs, calling them "market distortions" and emphasizing the benefits of free trade. He explained that tariffs are akin to imposing taxes between individuals, cities, or states, which would create unnecessary complications and potentially harm the economy. Musk stated, "Generally free trade is better, is more efficient. Tariffs tend to create distortions in markets". He also revealed that he had unsuccessfully attempted to dissuade President Trump from imposing tariffs, noting, "I've tried to dissuade him from this point of view, but unsuccessfully".

Musk's comments come at a time when India's economy has shown resilience despite existing U.S. tariffs. The Indian economy expanded at a higher-than-expected rate of 8.2% in the second quarter of FY26. This growth has been attributed to various factors, including increased consumer spending and strategic economic policies.

Meanwhile, India is moving ahead with stricter phone monitoring policies. The government has reportedly issued a private order mandating all major smartphone manufacturers to pre-install a non-deletable, state-owned cybersecurity application, 'Sanchar Saathi,' on every new device within 90 days. This order, issued on November 28, 2025, applies to companies like Apple, Samsung, Vivo, Oppo, and Xiaomi. For devices already in the supply chain, manufacturers are instructed to push the app via software updates.

The 'Sanchar Saathi' app allows users to report suspicious calls, verify IMEIs, and block stolen devices through a central registry. The government claims that the app is essential for combating cyber threats, preventing scams, and assisting in the tracking of lost or stolen phones. Since its launch, the app has reportedly helped block over 3.7 million stolen or lost mobile phones and terminate over 30 million fraudulent connections.

However, this move has raised concerns about privacy and potential misuse of surveillance powers. Critics argue that the inability to uninstall the pre-installed government app reduces user control over their devices. Mandatory updates injecting state-owned software into phones already in circulation also raise security questions, such as the risk of expanded attack surfaces if the app contains vulnerabilities.

These new measures align with existing regulations under the Indian Telegraph Act and the Information Technology Act, which already permit government-authorized phone tapping in specific cases. However, recent High Court rulings have highlighted the legal complexities surrounding preemptive surveillance and the need to balance law enforcement with the fundamental right to privacy.

Furthermore, India's Digital Personal Data Protection Act (DPDP Act), which is being operationalized in 2025, is also set to impact how businesses handle personal data, including mobile numbers. The DPDP Act requires retailers to obtain explicit consent before collecting mobile numbers and to clearly state the purpose for which the data is being collected. Users must also have the option to opt-out, and retailers must delete data after a set period.

As India navigates the complexities of cybersecurity and data protection, these new phone monitoring policies and data protection rules are likely to spark further debate about the balance between national security, individual privacy, and economic growth.