Alphabet Inc.’s tech giant, Google (GOOGL.O), is taking significant steps to deepen its presence in India, a key growth market for the company. At a “Google for India” event on Thursday, Rick Osterloh, Senior Vice President of Devices and Services, announced that Google would commence manufacturing smartphones in India, with the flagship Pixel 8 set to be available next year. This move aligns with the growing trend of global companies establishing facilities in India.
Google will collaborate with both international and domestic manufacturers to produce smartphones locally. With this initiative, Google aims to tap into the immense potential of the Indian smartphone market, where Android is the dominant operating system.
Beyond smartphone manufacturing, Google is expanding its role in the Indian financial landscape. The company disclosed its partnership with the Indian non-bank lender, DMI Finance, to offer small loans for merchants starting at 15,000 rupees ($180). Google Pay, which operates one of India’s largest payment apps, already facilitates loans through alliances with multiple lenders. Additionally, it will introduce credit via the Unified Payments Interface (UPI) in conjunction with leading banks. This development aligns with the recent decision by India’s central bank to allow credit services through UPI.
The push into lending comes at a time when the demand for small personal loans in India is on the rise, a trend that has garnered attention from the Indian central bank.
India remains a crucial growth market for Google, as the majority of smartphones in the country run on its Android ecosystem. However, Google faces challenges on multiple fronts in the Indian market. Several startups and companies, including Disney, have raised legal concerns about some of Google’s in-app policies. The company is also entangled in several antitrust battles, including one related to its alleged misuse of its position in the Android market.
Notably, India’s Prime Minister, Narendra Modi, expressed his support for Google’s plans during a recent virtual meeting with Alphabet’s CEO, Sundar Pichai. Google’s intention to establish a global fintech operations center at the Gujarat International Finance Technology City (GIFT) received a warm welcome from the Indian government.
Google is not the only global corporation with its sights set on India as a crucial growth driver. Apple (AAPL.O) is expected to account for 7% of all smartphone sales in India from July to December, according to data from market researcher Counterpoint. Additionally, U.S. memory chip firm Micron Technology (MU.O.) recently announced its plans to establish its first semiconductor plant in India, indicating the nation’s appeal as a hub for tech manufacturing and services.
