ECONOMY/ GOVERNANCE/ INTERNATIONAL
Topic: General Studies 2,3:
- Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment.
- Effect of policies and politics of developed and developing countries on India’s interests
Google’s Investment in India
Context: US tech giant Google announced plans to invest $10 billion in India over the coming five to seven years through the “Google for India Digitisation Fund”
The focus of investment will be on
- Bringing more high-quality low-cost smartphones to enable greater Internet access
- Building new products and services in consumer technology, education, health and agriculture
- Empowering small and medium businesses to transform digitally.
Significance of the investment
- The move signals a stepping up of engagement between Indian and US tech firm
- It shows the attractiveness of the India’s digital economy, even in the midst of a severe global economic slowdown.
- The investment is much needed at a time when Indian economy is in the midst of a deep slowdown
What is the broader shift that is happening in world?
- Google’s decision is also indicative of a wider shift signalling a split in the tech world between the US and China
- India had decided to ban the widely used Chinese app TikTok and US is also considering similar action
- US is also putting pressure on countries to keep Chinese company Huawei’s equipment out of their 5G networks
- UK has also banned the purchase of new Huawei equipment by its telecom operators after the end of 2020
- All these can be seen in countries trying to reconfiguring global supply chains, which is presently centred around China
- Indian government should do everything it can to deepen and widen this burgeoning market.
Connecting the dots:
- Pros and Cons of FDI
- Justice B. N. Srikrishna Committee report on Data Protection