Google and Alphabet's Chief Executive Officer (CEO) Sundar Pichai on July 13 announced a $10 billion Google For India Digitisation Fund that will assist in accelerating Prime Minister Narendra Modi's vision to digitise the Indian economy. Pichai made the announcement right after his virtual meeting with PM Modi at the Google For India 2020 event.
So, what exactly is this Google For India Digitisation fund for?
Through the India Digitisation Fund, Google will invest nearly Rs 75,000 crore over the next 5-7 years in Indian companies that are working on digitising India. This could entail picking up a stake in digital services companies.
And what will be the mode of investment?
Google will invest this amount through a mix of equity investments, partnerships, and operational, infrastructure, and ecosystem investments.
Is Google targeting any particular segments for investment?
Yes. Google will target four distinct areas of digitisation:
First, in enabling affordable access and information for every Indian in their own language, whether it’s Hindi, Tamil, Punjabi, or any other language.
Second, for building new products and services that are deeply relevant to India’s unique needs.
Third, for empowering businesses as they continue or embark on their digital transformation
Fourth, to leverage technology and AI for social good, in areas like health, education, and agriculture, said Pichai in a blog post on Google.
What drives Google's India investment decision?
The investment is part of Google's plan to scale up operations in India and participate in its growing digital ecosystem. Being the world's second-most populous country, India is home to nearly 500 million internet users and over 450 million smartphone users. This means more than half of the 130 crore population is yet to go online. This makes India one of the biggest untapped overseas market.
Recently, Jeff Bezos had also announced he would invest $1 billion into digitising small and medium businesses in India. Similarly, Reliance Jio has garnered massive investments from overseas investors wanting to play a part in India's digital story.
What other initiatives did Google announce at Google For India 2020 event?
Google also announced a partnership with Central Board of Secondary Education (CBSE) to offer digital learning modules across schools in India. The company will partner with 1 million teachers across 22,000 CBSE schools across the country by December-end. The learning content will be offered through a blended module. This means that there will be a mix of online learning with traditional classroom lessons.
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