Google’s Investment in India

  • IASbaba
  • July 16, 2020
  • 0
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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

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