Why Silicon Valley’s Tech Giants Investing Billions In India?


India has become the epicentre for giant tech investors as India seems to be the next big thing in the world.

Everyone eyes on India as a global hub for manufacturing and service providing superpower.

Investments started from the beginning of 2020 when coronavirus pandemic was on the rise. Biggest names in the Us tech companies heavily invested summing up to around $17 billion in India.

Top invested includes amazon, which announced investments worth $1billion in January. Social media giant Facebook invested massive 6 billion in April,

and google topped them all investing an immense amount of $10 billion.

courtesy of logical Indian

Coming years India might see made in India iPhones as one the biggest iPhone manufacturers, Foxconn is in talks with India to set a manufacturing unit.

At least 20 billion USD is being invested alone from the united states of America into India’s tech industry this year.

Besides Samsung India, which is the most significant mobile manufacturing unit in Asia, is looking for further expansion.

With their sudden strategic shift of offering more mid-range phones which spiked demand among consumers.

Looking back in the days when investors were in a phase where Indian regulations seemed not so compelling,

and tech CEO’s would get cold wave offs from new Delhi due to many unsuitable foreign investment policies.

So Why Top Tech Giants Investing In India now?

No one knew that coronavirus would hit the developing countries ripping apart the global economy, specifically the Indian economy. China behaviour after spreading the coronavirus is unacceptable as Indian diplomacy spat has spilt over tech.

A lot of tech giant dependency on china could be a significant factor for increasing investments in the Indian technology sector.

Trump’s administration further has put certain sanctions on their tech companies to either shift their dependency on the dragon,

or pay a high amount of taxes for continuing to outsource from China.

The USA showed distrust for Chinese when they firstly banned Huawei in the united states followed by zte. The communist party of china owned both firms.

Now where India has been working on better ties with the world. USA and India ties have become more reliable than ever.

Diminishing scope of tech cooperation with china. India stands as a tough contender for china amid the new threats to hong kong destabilization of the economy, giving new importance to the Indian market.

It would be a big missed opportunity for the big tech giant to not invest in India and ignore it for longer,

Indian digital economy has more than 700 million active users and ½ billion yet to come on the tech platform.

“People have confidence that long term, India is going to be a good market, that long term, its regulations are going to be fair and transparent enough,” said Jay Gullish.

He heads tech policy at the advocacy group US-India Business Council. “I think these are… deepening roots that already exist.”

The Dispute With The Dragon – China.

courtesy of financial express

Silicon Valley has largely shut out of China for years, thanks in part to the country’s massive censorship mechanism dubbed the Great Firewall.

A controversial new national security law imposed in Hong Kong, where Google and Facebook’s services are still accessible due to its relatively unfettered internet, could push them further away.

The new security law imposed on Hong Kong by China could primarily affect the china relationship with the tech giants.

Where Google and Facebook are still accessible due to its internet barrage policy could push significant tech investments further away.

Silicon valley has excluded Chinese for years due to the significant censorship mechanisms of google and Facebook in China.

China made its version of Google, Facebook, Whats App and at the same time trying to push their apps globally.

The new law gives power to the Hong Kong government the same authority Chinese government have to regulate tech platforms polices,

And even sharing their private data or take down a post which could hurt the china’s national security.

Twitter and many apps have said they will not share data with the Hong Kong government where tiktok has withdrawn completely.

Mark Lemley- the director of STAND FORD University, said that it had become harder and more complicated day by day to do business in China.

Chinese has a policy where a tech firm has to share its technology with the Chinese to do business in China. China takes advantage of getting newer and newer technology from different firms and use it for china’s development.

This causes a growing sense of troubling moral compromises while doing business with China.

President Donald Trump last week claimed that he is going to stop the expansion plans of Chinese tech company Huawei. And he is also banning the popular video app TikTok which is owned by china byte dance.

These small steps will help align us and India relations further. Last month Indian government banned tiktok and 52 other apps including UC browser and camscan popular apps after a recent clash against china.

In this clash, India side lost around 20 soldiers where china was reluctant to disclose the exact casualties. Us intelligence source has alleged that the Chinese team has lost if not but less than 100 soldiers.

Chinese foreign minister stated that disclosing could escalate more tension between the two neighbouring countries. This let to a movement boycott Chinese product is on the rise in India.

The Chinese tech market has deeper roots in India, having a vast user base in India with sizable Chinese investments as well. The recent tension could result in strengthening India’s ties with us.

Chaturvedi and other experts pointed out that 1000’s of Indian engineers are working across us in the silicon valley and many Indian acquires top CEO posts in US companies.

Asia’s Richest Man Enters The Game.

Mukesh Ambani, billionaire and chairman and managing director of Reliance Industries Ltd.,

Mukesh Ambani, Asia’s richest man, has established its own millions of active user base US tech companies were eyeing the Indian market for the same.

Most of the tech investment in India this year has gone to the side of Indian billionaire Mukesh Ambani jio platforms.

This platform is a subsidiary of the Ambani’s reliance venture. They raised 20 billion USD from venture capitalists and wealth funds.

Jio launched in 2016 as a really budget alternatives to Vodafone and airtel offering data and calling for free and then they started offering it at negligible rates. Within months jio gained 400 million active users.

Recent developments for jio is the jio ar sunglasses and zoom like video calling app called JioMeet. Looks like Ambani turning the company into an all Indian ecosystem that’s why silicon valley tech giants want to enter in the game with the stake.

Jio having a massive user base has an enormous amount of local influence as no global firm has managed this so quickly and successfully.


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