Google, Facebook investing in Indian-based digital platforms?

American multinational technology company, Google has on Wednesday, made an announcement that it would invest $4.5 billion in India’s Jio Platforms which is a unit of Reliance Industries that oversees music, movie and telecommunications ventures, respectively.

According to reports, this investment will allow Google a stake of approximately 7.7 percent of the total shares in Jio, in what is considered to be the latest ‘spree of western investments’ in the India-based digital company. In addition to this, Facebook had also reportedly bought a 9.99 percent stake in the company for nearly $5.7 billion last month.

It is estimated that since April, Jio has managed to raise more than $20 billion from investors that include General Atlantic, Qualcomm, Intel and Silver Lake, respectively.

According to Foreign Policy (FP), Jio has ‘transformed India’s digital market’ by bringing in almost $30 billion into the country’s internet infrastructure and allowing them the opportunity to build a nationwide 4G network which would allow the customers with unlimited data for free.

It is to be noted that although India is ‘rapidly digitizing’, Jio offers the opportunity for Indians to ‘discover all that internet has to offer’, according to FP. It is reported that the investments are enabling Jio’s value to rise to nearly $60 billion, and that partnering with the multinational company, Google, will allow Jio to draw in its expertise.

Moreover, a potential low-cost 5G Jio smartphone could depend on Google’s Android system for its power. Similarly, Jio’s partnership with Facebook could also provide ‘synergies though WhatsApp’ which would allow ‘Reliance to take over the digital money and e-commerce markets’ although this could potentially harm connections of Indian companies with Amazon and Walmart, according to FP.

Apart from this, experts suggest that Reliance which is well-known for its government connections is expected to become a dominant player in the 5G market. This would benefit Google and Facebook in ways such as allowing users to discover internet through Jio’s data and smartphones, according to reports of Foreign Policy.

It is to be noted that given the escalation at the Ladakh border, between China and India, Indian Prime Minister Narendra Modi had urged for ‘self-reliance’ which led to India boycotting Chinese products including Chinese apps which has led to Reliance becoming the domestic winner especially given the recent investments from western businesses.

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