Why X is suing India when Elon Musk is cosying up to PM Modi

Content censorship is at the centre of the lawsuit

Elon Musk with Indian Prime Minister Narendra Modi in Washington, DC. Reuters

Elon Musk’s social media platform X has filed a lawsuit against the Indian government alleging it of “unlawful censorship" of online content.

The move underscores the complex ties between the American billionaire and the world’s most populous nation, as Mr Musk moves closer to introducing both Starlink and Tesla in India.

What is the lawsuit about?

The lawsuit, filed in the high court of the South Indian state of Karnataka, challenges the Indian government's use of Section 79(3)(b) of the Information Technology Act, 2000, to enforce content takedowns and block posts on X’s platform.

It also challenges the Sahyog portal, launched last year by the Indian government, which seeks to streamline the process for government authorities to issue takedown requests and co-ordinate enforcement with social media companies.

In the filing, X has argued that the combination of 79(3)(b) and the Sahyog portal allows the government to censor content without following the established legal process outlined in the IT Act.

While Section 79 generally shields online platforms like X from responsibility for user-generated content, Section 79(3)(b) removes that protection if they don't take down content used for illegal activities, after being informed by users or the government.

What is the Information Technology Act?

The IT Act is India's main legislation governing the digital sphere and aims to provide legal recognition for electronic transactions and digital signatures, regulate cyber crime, and support e-governance.

In 2008, the IT Act was updated to address gaps in the original law and adapt to India's evolving tech landscape and growing security needs. The amended legislation focused on cybersecurity measures, monitoring and decryption of electronic records, and efforts to combat cyberterrorism, among other provisions.

The Indian government has become more assertive in regulating online content in recent years, citing national security, public order and the need to prevent misinformation.

The government’s oversight of online content significantly expanded with the introduction of the Information Technology Rules of 2021, which requires social media platforms to exercise “due diligence” in their operations, including promptly removing unlawful content upon receiving notification from the government or users.

The regulations mandated that major social media platforms set up systems for handling user complaints and designate specific personnel to liaise with law enforcement.

Why does India matter?

India, the world's fifth-largest economy, boasts one of the largest social media user bases, with hundreds of millions of active users.

As of January 2025, the country had 491 million social media user identities, representing 33.7 per cent of the total population, according to Datareportal.

'America should mind its own business,' says Elon Musk

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India is the fourth-largest market for X by user base, with 24.1 million active users as of January 2025. The US recorded 104 million active users, Japan 70.9 million, and Indonesia 25.2 million, the data portal said.

Grok controversy

Although unrelated to the X lawsuit, Mr Musk's AI chatbot Grok has recently attracted attention from many Indian users and media for generating content and responses that the ruling BJP government deems “abusive and controversial."

In response to a recent user query, Grok made comments regarding Prime Minister Modi's interviews, saying they “often seemed scripted".

India's IT ministry has contacted X regarding Grok's use of Hindi slang and offensive language, and is investigating the cause of this inappropriate language, with X co-operating in the inquiries, according to local media reports.

Mr Musk has previously said that Grok is designed to be “maximally truth-seeking", even if that truth clashes with political correctness.

India pivot

The lawsuit comes at a time of growing ties between Mr Musk and the Indian government.

Last month, Indian Prime Minister Modi was in the US to visit President Donald Trump.

In a meeting with Mr Musk, the two discussed collaborating in the fields of artificial intelligence (AI), space exploration and sustainable development, according to India’s Ministry of External Affairs.

This month, India’s largest telecom operator, Reliance Jio, and its competitor, Bharti Airtel, each signed separate agreements with SpaceX to introduce the Starlink internet service in the country.

SpaceX has been trying to launch its services in India since 2021, but regulatory challenges kept delaying its entry.

Meanwhile, Tesla plans to launch in India this year, with initial showrooms expected to open in New Delhi and Mumbai as early as April.