Google’s Investment in India

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

Conclusion

• 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