Apple, Google, Meta see faster growth in India than globally

Big tech companies are growing faster in India than their global growth rate.

Over the last four fiscal years, Apple India, Google India, and Facebook India have been performing better than their global counterparts.

According to regulatory filings accessed by businessline via Toeflr, Apple Inc’s net income growth declined from 64 per cent in FY21 to 3.3 per cent in FY24. Meanwhile, Apple India’s net income grew in double digits year-on-year, with profits increasing by 32 per cent, 3 per cent, 76 per cent, and 23 per cent in FY21, FY22, FY23, and FY24, respectively. In October, the company announced plans to open four new retails stores in Mumbai, Pune, Bengaluru, and Delhi-NCR. Deirdre O’Brien, Apple’s senior vice president of Retail, expressed excitement about expanding in the new markets, aligning with Apple CEO Tim Cook’s remark in May that described India as an “incredibly exciting market.”

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Alphabet’s net income growth declined from 89 per cent in FY22 to 23 per cent in FY24, whereas Google India’s net income growth increased from 14 per cent in FY21 to 25 per cent in FY24. In terms of profit, Google India grew at 37.8 per cent, 53 per cent, 8 per cent, and 6 per cent from FY21 to FY24. Google is making significant investments in India, having announced a $10 billion funding plan a few years back. During Google I/O Connect in July, the company announced a range of tools, programs, and partnerships for Indian developers and start-ups. It also mentioned working with MeitY Startup Hub for AI. Further, it announced plans to collaborate with the Open Network for Digital Commerce (ONDC).

Meta’s global net income growth increased from 58 per cent in FY21 to 68.5 per cent in FY24, while Facebook India’s total income grew from 16 per cent in FY21 to 8.8 per cent in FY24. After a 5 per cent decline in profits in FY21, the company’s profit grew by 131 per cent in FY22, 18 per cent in FY23, and 43 per cent in FY24. During the ‘Build with AI Summit’ in October, Sandhya Devanathan, Vice President and Head of Meta India said the company believed in India’s potential to lead the way in AI. However, the company has been facing regulatory compliance issues, the most recent being the Competition Commission of India’s order that forbade the company from using user data for targeted advertising.

Regarding the future of these companies in India, Sanchit Vir Gogia, Chief Analyst & CEO at Greyhound Research, said, “The markets are doing good; the government policies are very favourable for pent-up demand, and the consumer sentiment is doing extremely well. It’s all bullish from here. In the next decade or so, we will see a ton of growth from varied segments of the country, and these segments will want hardware, software, and much more. Broadly, there will be a robust demand from here for India for the next decade or so.”

Similarly, Naresh S, research analyst at Gartner, said, “The global economy is not doing well, so companies will invest in markets like India to grow. Since there is geopolitical rivalry between US and China, there is economic warfare between them. That is positively impacting us. There have been a lot of tech investments in Asia. Things which would have been invested in China are being deflected to India and some other countries. If we keep odds favourable, growth will be sustainable for India.”

When asked about the seemingly staggering trends of growth in India, both experts attributed the trend to an increase in expenses and policy compliance. “From a permanency perspective, no technology company should fail to do well in theory in India, as long as it complies with government policy and aligns with consumer sentiment,” said Gogia.