Tech giants derisking biz via big investments in India
Google, Microsoft, Amazon recently announced billions of dollars of investment
image for illustrative purpose
Bengaluru: Technology giants like Google, Microsoft, Amazon have announced billions of dollars of investment in India as part of their strategy to secure their leading position in the domestic market amid geopolitical uncertainties.
According to industry experts, such huge investment commitment is part of geopolitical derisking strategy of American technology giants as the US administration under Trump is pursuing policies that are antagonizing India.
“All these steps seem to be part risk management strategy of technology giants. Some months back, Indian government has made its intention clear about promoting indigenous digital stack. Zoho’s platforms have been actively adopted by ministries. There was a fear that American tech giants may lose Indian market. To derisk geopolitical issues, they want to secure Indian market through large investment commitment,” Pareekh Jain, an IT outsourcing advisor & Founder of Pareekh Consulting told theBizz Buzz.
He also said that the US-Europe relations are already frosty and American technology giants don’t have much access in Chinese market. “They can’t afford to lose a market like India,” he added.
Notably, Google, Microsoft and Amazon have announced huge investment plans in India.
Google is planning to invest around $15 billion over the next five years to establish its first AI hub and a gigawatt-scale data centre in Visakhapatnam.
This is the largest investment plan of Google outside of the US. Similarly, Microsoft has also announced huge investment plans in India.
The company recently announced that it would invest around $20 billion in coming years.
These investments will be utilized for building AI infrastructure and cloud capacity expansion in the country. Meanwhile, Microsoft’s India South Central Cloud Region in Hyderabad will go live during middle of 2026.
Similarly, Amazon has unveiled plans to invest more than $30 billion in India by 2030. A significant portion of this investment will be invested in AI infrastructure, related to Amazon Web Services (AWS).
Global technology industry is going through a period of slowdown as the Trump administration’s trade tariffs have disrupted the global trading system to a large extent.
Meanwhile, the US administration’s protectionist policies related to H1B visa, and imposition of punitive 50 per cent tariff on India have derailed decades of good relationship between India & the US.
Amid such geopolitical events, global technology giants are keen to maintain their leading position in a large market like India.
Sources in the know said that data sits at the heart of efficient AI model and all global giants want to improve their models with the help of Indian users.
