What Facebook Inc (FB), Microsoft Corporation (MSFT), QUALCOMM, Inc. (QCOM), And Others Are Vying For In India?
Indian Prime Minister, Narendra Modi’s during his recent visit to the United States got plenty of support. He met top Silicon Valleycompanies which pledged their support and promised significant investment in the country. Microsoft Corporation (NASDAQ:MSFT), Google Inc (NASDAQ:GOOGL), Facebook Inc (NASDAQ:FB), Apple Inc. (NASDAQ:AAPL), and QUALCOMM, Inc. (NASDAQ:QCOM) participated in the digitization of India conference that was held in the United States. It was not a surprise considering how India provides a big opportunity for the tech companies.
What All Constitutes Digital India?
Ever since Modi took over as Prime Minister in May 2014, he has been focusing more on the digitization. Broadband in highways is one of the priority areas. India’s digital divide provides an opportunity considering millions of people without internet. Microsoft Corporation (NASDAQ:MSFT) and Google Inc (NASDAQ:GOOGL) have already committed to internet access and Wi-Fi.
Secondly, the government is trying to extend to 42,000 villages flawless mobile connectivity before the year 2018 ends. That requires huge investments. The government is also aiming to have all documents issued in a digital locker. Another important area is manufacturing. The government is actively promoting ‘Make In India’ throughout the world. India also seeks to boost manufacturing of electronics so that there are no imports, which meant exports would equal the imports by the year 2020.
How big is the opportunity?
India is next to China as far as population is concerned. The country is a developing market providing immense opportunities to the business class around the world. Currently, China is struggling to retain the growth pace and is now at a two-decade low. India is trying to take advantage of the situation and push through its Digital India initiatives to attract more investments from the companies in the Americas and elsewhere. For all practical purposes, India is trying to replace China in the American firms’ business map.
There are opportunities in education, financial services, and digital healthcare apart from the analysis, diagnostics, and service design, as well as, delivery. As the government is promoting digitalization in every sector, there are opportunities in almost every sector. However, IT is one sector where India already has a global presence with companies like Infosys Ltd (ADR) (NYSE:INFY).
Until Now, Microsoft Corporation (NASDAQ:MSFT) has committed to taking low-cost broadband technology to 0.5 million villages in India. The company also announced that it will establish a data center in India for cloud computing, which will be a big milestone. Similarly, Google Inc (NASDAQ:GOOGL) has pledged to help set up base for Wi-Fi at 500 railway stations free of cost. That apart, the search engine giant will also enable typing in ten different Indian languages.
In the same way, QUALCOMM, Inc. (NASDAQ:QCOM) is ready to invest $150 million in Indian startups in the ecosystem of Internet of Everything and mobile.
Why India Can’t Do It All Alone
The kind of investments required to make India as a digitalized one required huge investments, which cannot be met by Indian businesses alone. Apart from investments, India also needed technology expertise from the leaders. Therefore, it is quite natural to approach global companies with a big cash balance to descend to India. Modi also talked to Tesla Motors Inc (NASDAQ:TSLA) on the possibility of establishing batteries and solar panel units.
When Modi invited Apple Inc. (NASDAQ:AAPL)’s CEO, Tim Cook, to make in India, he has reportedly responded favorably. It appears that India is in his map for long-term objectives. For making digital India, the government strongly believes that it needed the support of Microsoft Corporation (NASDAQ:MSFT), Google Inc (NASDAQ:GOOGL), Facebook Inc (NASDAQ:FB), Apple, and QUALCOMM, Inc. (NASDAQ:QCOM). That is because they were experts in their own areas and have strengths to expand.
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