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Google to Spend $10 Billion in India

By Rich Duprey – Updated Jul 13, 2020 at 1:34PM

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The announcement follows similar investment commitments made by other tech companies.

Alphabet (GOOG -0.44%) (GOOGL -0.55%) says its Google division is going to make a big bet on India's digital growth by investing $10 billion in that country over the next five to seven years.

Speaking on the company's annual Google for India webcast, CEO Sundar Pichai said, "We'll do this through a mix of equity investments; partnerships; and operational, infrastructure, and ecosystem investments."

Computer keyboard with India flag and word sale

Image source: Getty Images.

A country with huge tech potential

Second only to China with 500 million internet users, India is attracting massive investments from the largest U.S. tech companies. Earlier this year, Facebook invested $5.7 billion in Indian telecom Jio Platforms, joining Intel and Qualcomm as investors in Jio. Amazon.com has said it is investing $1 billion in the country, and Apple is moving more of its manufacturing there.

Google has previously considered investing in Vodafone Idea, a joint venture of the U.K. telecom and India's Aditya Birla Group. 

Google will target its investment into several broad areas, including providing access to information in a user's own language, including Hindi, Tamil, and Punjabi; building products targeted to India's specific needs; and using technology and artificial intelligence in health, education, and agriculture for social good.

The announcement comes as India's government looks to limit the ability of Google and other tech companies to control data and the online experience. A government committee in India just issued a 72-page report calling for a new regulatory body that would control the ability of companies to share and monetize information they collect online while ensuring the privacy of users.

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to its CEO, Mark Zuckerberg, is a member of The Motley Fool's board of directors. Rich Duprey has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Alphabet (A shares), Alphabet (C shares), Amazon, Apple, and Facebook. The Motley Fool owns shares of Qualcomm. The Motley Fool recommends Intel and recommends the following options: short January 2022 $1940 calls on Amazon and long January 2022 $1920 calls on Amazon. The Motley Fool has a disclosure policy.

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