Judicious collaboration

Facebook's agreement to buy 9.99 per cent in Jio Platforms, investing Rs 43,574 crore, heralds many opportunities for the growing Indian market. The deal per se happens to be the largest tech FDI in India but more than that, it can be understood as the collaboration between two giants for a common cause which is digital inclusion of India's massive unorganised sector. Facebook CEO Mark Zuckerberg and Jio's parent company RIL both emphasised the collaboration as a catalyst for the development of novel digital systems penetrating the MSME sector, farmers, small traders and merchants amongst others forming the unorganised sector. While explicitly mentioning the need for digital tools for the said audience, especially in current times when digital platforms have garnered much attention due to the great lockdown, Zuckerberg underlines Facebook's expertise in complementing Jio's expansive user base to offer new opportunities to them. It must be acknowledged that both Facebook and Jio boast a massive user base in India. Since bursting into the telecom scene and heralding a new era of cheap data, Jio has single-handedly transformed the Indian market. It is to Jio's credit that India has one of the lowest data rates in the world. This characteristic has allowed the average Indian access to the Internet which in itself is a sea of opportunities. And, through Jio's entry and consequential cheap data regime, India has taken a significant leap towards the realisation of its Digital India mission. No doubt there are challenges in abundance such as digital literacy without which India's digital inclusion would appear hollow but the sheer user base of Jio — which provides seamless cheap data — makes it possible for Indian society to achieve a digital revolution. Of course, when speaking from the aggregate perspective, the inclusion of local traders, Kirana shops, auto drivers, farmers, etc., is the crux. It is their digital literacy and inclusion that would herald a new digital era for the country. And, while Jio has played a crucial role in bringing hundreds of businesses online, WhatsApp — Owned by Facebook — has provided seamless connectivity between them; WhatsApp's 20 per cent audience resides in India. FDI in Jio could just be a prelude to a number of projects that both companies can bring for the ripe Indian market.

Prime Minister Modi's Digital India Mission — launched in 2015 — envisages improved online infrastructure, digital empowerment of people in the country and digital literacy. It elicits both ease of living and ease of doing business and as such, both have been showing positive trends in the past few years. A variety of government services have been shifted online so that those can be availed without any physical commitment of time in queues and government offices. 2016 onwards, Jio has made headways in pursuing the objectives of Digital India by providing stable and massive internet connectivity with its humongous network outreach and user base. The pandemic and the lockdown has further underlined digitisation as a highly crucial and benefitting component of businesses. Clearly, those businesses without digitisation, in any form, are the ones suffering the most. Post-COVID-19 India will seek digitisation with renewed interest. And, the prospect of development in digital infrastructure can be well tapped by Jio and Facebook together. Currently, only Jio Mart — e-commerce marketplace connecting retailers with customers — is on cards, and can be well enhanced if Facebook designates WhatsApp to provide curated connectivity between traders and customers. But that is just the beginning. The FDI by Facebook is more strategic than just a routine business adventure. The California-based giant recognises India's entrepreneurial potential and has repeatedly shown interest in the Indian market. A 9.99 per cent stake in Jio is perhaps one of the first steps to realise that potential. There is no denying that post-COVID world will pave way for more digitisation. Jio and Facebook have already begun making strides in that direction.

(Image from dtnext.in)