Indian-born Google CEO Sundar Pichai announced that his company plans to invest 10 billion dollars in India over 5-7 Years. This ‘Google for India digitization fund’ will be a vehicle for the company to “accelerate digitization” and make further inroads into the world’s second-largest Internet market.
This announcement comes at a significant time given the impending tech investment gap, a consequence of the Centre’s strict action against Chinese Companies following the incidents in Ladakh.
Nature of the Investment
Google hopes to invest in India through various means, including equity, partnerships, operations, infrastructure, and ecosystem investments. The extent of the involvement is, “a reflection of our confidence in the future of India and its digital economy,” Pichai said, via video conference, at the company’s annual event focused on India.
Watch: Major Push For ‘Digital India’ As Google To Invest $10 Billion In India
According to Pichai, the investment plan unveiled by Google will focus on four key areas:
- Enabling access to information for every Indian in their language
- Building unique products and services as per Indian needs
- Empowering businesses for a digitized future
- Using technology in social sectors like Health, Education, and Agriculture
What is at stake for Google?
The recent ban on Chinese Applications and a further, stricter policy of FDI for neighboring countries like China, has made India a ripe territory for American Tech Giants like Facebook, Amazon, and, Google to expand their operations. Moreover, having a solid network in India has become even more crucial for American Tech Giants who have been largely shut out of China, the biggest Internet market in the world. With Google announcing the end of its cloud service program, an investment in India makes even more sense.
Additionally, with tech rivals like Amazon and Facebook already announcing their plans to invest heavily in India, it is only natural for Google to try and grab its stake in the Indian Internet Revolution. With this investment announcement, Google seeks to cement its claim on the share of potential revenue to be generated from India.
What does this Investment mean for India?
The year 2020 has been a marquee year for India as far as technological investments are concerned. Within a space of seven months, India has seen investment plans from the biggest technological corporations ranging from Apple to Samsung, Amazon, Facebook, Microsoft, Foxconn, and now Google.
The investment not only makes India a key global investment hub, but also consolidates its position as the next hub, after China, for world technological operations.