Digitization Fund for India

Context: Recently, the technology giant Google will invest $10 billion (₹75,000 crore) in India over the next five-seven years as ‘India Digitization Fund’. 

Significance of India Digitization Fund for India

  • It will focus on digitising the economy and building India-first products and services.
  • The investment will focus on four areas which are important to digitization including:
    • enabling affordable access and information for every Indian in their own language,
    • building products and services that are deeply relevant to India’s unique needs,
    • empowering businesses in their digital transformation journey; and
    • leveraging technology and AI for social good, in areas like health, education, and agriculture.
  • It assumes particular significance given the impending gap in the country’s tech investment ecosystem following the Centre’s clampdown on Chinese technology firms.
  • The investments will be made through a mix of equity investments, partnerships, operations, infrastructure and ecosystem investments.
  • The investments include Google’s existing projects such as Internet Saathi for spreading awareness of the Internet in rural villages and an artificial intelligence-based flood forecasting system.
  • The $10 billion as part of the ‘Google for India Digitization Fund’ will boost Indian companies in Google’s portfolio.

Significance of India Digitization Fund for Google

  • It will present an opportunity for tech majors like Google to grow their share in India’s internet pie.
  • The potential hurdles for Chinese companies investing in India could provide better prospects for American giants to strengthen their position in a market which has the second-most Internet users in the world.

Source: The Indian Express

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