India's Internet Boom: A New Growth Opportunity for American Companies

Strategic Insights -

India's 1.25 billion residents have made the country the world's fastest-growing major economy, offering American Internet companies a new chance to tap into its massive market. Facebook, Google, and Twitter, among others, have set their sights on India as they seek to expand their reach beyond China. With smartphone users expected to reach 168 million this year and 277 million Internet users overall, India's growing demand for mobile and Internet services presents a lucrative opportunity for these American companies.

Key Takeaways:

  • India has become the hottest growth opportunity for American Internet companies, with 132 million Indian users on Facebook and 277 million Internet users overall expected in the country.
  • Facebook has made significant investments in India, including partnering with a local cellphone operator to offer a package of free services, such as news, job listings, and text-only versions of Messenger and its social network, under its Internet.org initiative.
  • Google has added support for more Indian languages and is compressing web pages to reduce data usage, making the Internet more accessible to India's vast population.
  • Twitter is experimenting with new ideas in India, including repositioning itself as a real-time news service and using technology pioneered by its acquired start-up, ZipDial, to deliver tweets to basic phone users through text messages.
  • Google hopes to get 500 million Indians online by 2017, while Facebook aims to focus on the billion people who are not connected and offer basic versions of its service that work on simple phones and slow networks.
  • India still poses challenges, including censorship and competition for digital advertising revenue, but American companies are playing the long game to tap into its massive market.

Statistics:

  • India's smartphone user base is expected to reach 168 million this year (eMarketer).
  • 277 million Internet users are expected in India overall (eMarketer).
  • Four in five Indians have used the Internet at least once in their lives.
  • Only one in six Indians know enough English to surf the web in the language.
  • 20 million users in India are on Twitter.

Sources:

  • "American Technology Firms Hoping for Growth in India", The New York Times
  • "India's Internet Market to Grow to 277 Million Users by 2015", eMarketer
  • "Google to Reach 500 Million Indians Online by 2017", The Financial Express
  • "Facebook Aims to Boost Internet Access in India", The Economic Times