China’s locked out: Google Invests $10 Billion In India, Following Facebook, Amazon, Apple
Google outlined a $10 billion investment in India in an effort to make the internet more "affordable and useful" to the more than one billion people living there.
Before Pichai made the announcements, he also had a video-conference with Prime Minister Narendra Modi to discuss Google’s ideas for India’s digital future.
Google’s announcement last day also comes at a time when India appears to be shutting its door to Chinese firms. New Delhi last month banned 59 apps and services developed by Chinese companies.
Among those that have been banned include ByteDance’s TikTok, Alibaba Group’s UC Browser and Tencent’s WeChat. Some industry players believe that this ban would help American tech giants further expand and promulgate across India as they face less competition.
"As we make these investments we look forward to working alongside Prime Minister (Narendra) Modi and the Indian government, as well as Indian businesses of all sizes to realize a shared vision for a Digital India," Pichai said. "Our goal is to ensure that India not only benefits from the next wave of innovation but leads it."
Meanwhile, India has seen a surge of foreign interest in its digital
economy. In the past few months, investors including Facebook Inc.,
Qualcomm Inc. and Intel Corp. have put about $16 billion in the digital
services unit of India’s largest conglomerate, the retail-to-telecom
giant Reliance Industries Ltd.
This month, Google abandoned plans to offer a new cloud service in China
and other politically sensitive countries due in part due to concerns
over geopolitical tensions and the pandemic.The investment will be done
over the next 5-7 years.
The investments will focus on four areas
- First, enabling affordable access and information for every Indian in their own language, whether it’s Hindi, Tamil, Punjabi or any other
- Second, building new products and services that are deeply relevant to India’s unique needs
- Third, empowering businesses as they continue to embark on their digital transformation
- Fourth, leveraging technology and AI for social good, in areas like health, education and agriculture
India and America have had strong business relations over the many years and several American companies are fulfilling the indispensable needs of the Indian market. From searching online through Google to drinking Coca Cola, or using the latest I-phones by Apple, the Indian consumer is, by and large, a dedicated follower of American companies. American companies are preparing to set up an alternative to China by investing in India.
The Indian Government’s favourable policy regime and robust business
environment has ensured that foreign capital keeps flowing into the
country. The Government has taken many initiatives in recent years such
as relaxing FDI norms across sectors such as defence, PSU oil
refineries, telecom, power exchanges, and stock exchanges, among others.
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