India is a growing market fueled by its economic aspirations and young demographics. It’s little wonder that every major company in the world has a presence here, and Google is no different. It plans to set up a dedicated data center in Mumbai during 2017 to cater to the growing demands of Indian businesses.

This is an important move for Google because the Indian market is too large to be ignored. Already AWS and Microsoft have a presence here. However, the Indian cloud market is still in the developing stage, so any investments here is likely to grow with the cloud sector. All the major cloud providers understand the current situation, as well as the potential it offers during the next decade or so.

Currently, many businesses in India are in the unorganized sector, especially small and medium enterprises. Many of these SMEs still prefer to use cash for their everyday transactions, and only have a limited exposure to technology. All this is expected to change within the next few years – thanks to awareness about the benefits of universal education and the Indian government’s robust economic policies.

India has a young population, and the education levels are slowly and steadily increasing. Many children attend private or government schools, and they are getting exposed to a lot of technology. This means, they will grow up in a digital space, and it won’t be long before they drive the digital world. Another significant factor is the Indian government’s push towards a digital economy. Single-window business clearances, demonetization, and other steps are ensuring that more people would embrace the digital world for their everyday needs. While the results won’t be imminent right away, it’s sure to make a difference within the next five years. When that happens, tech companies want to be in a position to tap into the demand, and this is why they’re planning ahead of time.

Another reason for Google’s Indian presence is its aim to become a leader in the Japan and Asia Pacific region. To this end, it has invested about $9.9 billion in 2016 alone, and this has led to the emergence of two centers – one in Taiwan and the other in Japan. In 2017, it plans to open three more centers in Asia, out of which one will be in Mumbai. The company reiterated that Mumbai will be a region with three zones, but this doesn’t necessarily mean three data centers. Rather what it means is that these zones will ensure a risk-free and fall-tolerant service, but could encompass any number of data centers, but all of them will be located in the Mumbai region.

Though there are many cities in India, Google announced that it chose Mumbai because it is the financial capital of the country, and many local businesses are already using cloud or are planning to move to it soon.

This announcement is good news for the Indian economy as it will generate more employment opportunities, and can also assist the government’s plans to move the country to a digital space.

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