$10 Billion Investment by Google in India
On 13th July 2020, Google has announced plans to invest $10 billion (INR 75,000 Crs) in India over the next 5-7 years by way of a mix of equity investments, partnerships, operations, infrastructure, and ecosystem investments. These include Google’s existing projects such as Internet Saathi for spreading awareness of the Internet in rural villages and an artificial intelligence-based flood forecasting system, among others. Google would focus on areas such as enabling affordable access to the Internet and to information for every Indian in their own language.
Funds will be utilized in the following sectors
Building new products and services in segments like consumer tech; education; health; and agriculture; Empowering businesses; especially small and medium ones; to transform digitally; Leveraging technology and artificial intelligence for digital literacy; outbreak predictions, and support for rural economies.
History of Google’s top investments in India
Google has invested in various startups and ventures in India through several of its investment vehicles such as: Company
Investments in INR
Sana Ventures (Seed Funding Round) INR 3.13 Cr
Agastya International Foundation INR 3 Cr
Online education portal CueMath INR 39 Cr
Dunzo INR 337.50 Cr
Aye Finance INR 206.25 Cr
Compared with its global investments, investment in India was minimal, but the $10 billion as part of the ‘Google for India Digitization Fund’ will boost Indian companies in Google’s portfolio.
How does this announcement figure in big-tech’s outlook on India?
Google’s investment plan is in line with big-tech’s bullish outlook on India. Earlier this year, Amazon said it would invest an additional $1 billion in India. This was followed by a marquee investment announcement of $5.7 billion by Facebook in the country’s largest telecom company Reliance Jio. Last month, Microsoft’s venture fund M12 said it would open an office in India to pursue investment opportunities focusing on B2B software startups. This is a very important factor why new entrepreneurs who are scaling up their tech-startups to keep and eye on acceleration funds of Google and Microsoft India.
The downfall of Chinese Companies: Beneficial to India?
Due to the downfall of Chinese companies, there is an opportunity for tech giants like Google to grow their share in India’s internet market. Big technology companies like Google, Facebook, Netflix, and Twitter are, in any case, prohibited from doing business in China. Potential hurdles for Chinese companies investing in India could provide better prospects for American giants to strengthen their position in a market which has the second-most Internet users in the world. With the satuartion in the US startup market and deviation from China, Indian startups can leverage this upcoming opportunity in the coming years.
Source – Indianexpress.com