Now Reading: Fund manager warns India handing $1 trillion to US Big Tech
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Fund manager warns India handing $1 trillion to US Big Tech
Fund manager Harsh Gupta Madhusudan has warned that India is "sleepwalking into a 2035 scenario" where US tech giants like Google and Meta dominate the country's digital advertising market, potentially costing India…
The Story in Brief
Fund manager Harsh Gupta Madhusudan has warned that India is "sleepwalking into a 2035 scenario" where US tech giants like Google and Meta dominate the country's digital advertising market, potentially costing India $1 trillion in lost market value. He said these companies benefit from network effects and winner-takes-all scale economies.
Madhusudan raised concerns about data security, claiming US law allows government access to user data without a warrant. Tax Compass CEO Ajay Rotti added that US Big Tech avoids paying taxes in India because the US has not joined the OECD's digital tax framework.
The Indian Opinion
The usual chorus will now demand protectionism, but that misses the point. India cannot compete by building a digital wall while its own consumers and businesses rely on Google and Meta daily. The real gap is domestic: Indian platforms have failed to build products that win network effects. Instead of blaming free trade, ask why no Indian search engine or social network commands even 10 percent of the market that Apple's 30 percent app store fee squeezes. The test is not who pays tax now, but whether Indian startups can break the scale barrier within five years.
Source: businesstoday.in
This story was synthesised by AI from the source linked above.
