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Dhruv Dancing and Enjoyment

Beauty of Nature around Us 10

Benefits of Google Investment

Currently the whole world is facing the sting of Covid-19. Due to which the problem of unemployment has increased in our country. People are living in financial crisis. Many industries have closed down due to lock-down and many are on the verge of closure. In such a situation, news came in the past that Google will invest $10 billion in India over the next five to seven years.

Keeping this in mind, I asked question in front of some friends of my school, what will be the benefit of this. Some of my classmates are in good positions; two of them expressed their views.

A friend who holds a high position in a Multinational Company said that

Any such investment plays out in one or all of 3 ways - 1. Physical set up - manufacturing (pixel, Google home etc). 2. Development- increase resourcing and double down on its dev centers in India. 3. Invest in Indian companies - like FB has done with JIO

On all these, there are a few downstream advantages -

1. Jobs - obviously; mostly tech (HW and SW) 2. MACRO - diffused benefits of $10 b injection 3. Regional - Whichever state gets this investment, will experience immediate economic buoyancy due to an ecosystem spawned and wealth creation from the recipient center

Overall, economic value will be created but like everything else, who will capture how much will depend on power structure, preparedness (education, urban anchor etc).

One key thing - it’s not charity. They would use it as a supply node (low cost and highly capable tech talent) as well as demand node (digital in India is kicking off in a big way). B2C side, Google would see us as the world’s largest market (given China situation). On B2B, there are billions to be made too. It may also want to leverage the elevated levels of Govt. spending in next few years.

3 constituencies will benefit primarily - tech talent who get jobs, allied industry sectors (realty, hospitality etc) who sell to Google, Ecosystem (this may include everything around their offices).

Another friend who is a Professor of Economics at a renowned university said that

More important is that it is going to set market signal in right direction. We all know market also function on "animal spirits" (by Keynes). Therefore, this will have exponential effects on Indian economy. Of course, those regions which will facilitate with effective governance, which includes many indicators. Hope, this will another paradigm shift.

Also Read https://blog.google/inside-google/company-announcements/investing-in-indias-digital-future/