India is rapidly emerging as one of the fastest-growing and most strategically important markets for Google Cloud. This assertion comes directly from Bikram Singh Bedi, Vice President and Country Managing Director of Google Cloud India, underscoring the company's commitment to the region. Google Cloud is focused on increasing capacity and bringing the latest technology to serve its expanding customer base in India.

Several factors contribute to India's significance in Google Cloud's global strategy. The country boasts a large and rapidly digitizing economy, a burgeoning startup ecosystem, and increasing adoption of cloud technologies across various sectors. Google Cloud is witnessing increased demand from the public sector, government enterprises, small and medium businesses (SMBs), and digital-native companies. These organizations are leveraging cloud solutions to drive innovation, achieve business goals, and undergo digital transformation.

Google Cloud recognizes India as both a consumer and a creator economy for cloud and AI solutions. The company is actively investing in engineering talent, customer engagement, and strategic partnerships to strengthen its presence and cater to the unique needs of the Indian market. Google Cloud has expanded significantly, operating in over 200 countries and territories, with a strong focus on providing local support and leveraging AI to enhance customer experiences.

To address the growing demand and ensure optimal service delivery, Google Cloud has established two cloud regions in India, one in Mumbai and another in Delhi-NCR. The Delhi-NCR region, launched in 2021, was specifically set up to cater to the public sector's needs, offering capacity building, disaster recovery solutions, and low latency. Google Cloud is also working closely with the Indian government on the IndiaAI mission, exploring opportunities to collaborate with the Ministry of Electronics and Information Technology (MeitY).

AI is a major driver of Google Cloud's growth in India, shifting customer focus from cost optimization to AI capabilities and tools. Google Cloud is investing heavily in AI infrastructure, targeting India's booming AI startup ecosystem and enterprise sector. Google Cloud has announced initiatives, including the introduction of Gemini Flash 1.5, a large language model based in India. Google Cloud intends to bring all layers of its AI stack to India, including models and hardware.

Google Cloud differentiates itself through its AI stack, encompassing infrastructure, research and models, AI agents, and its AI training and deployment platform, Vertex AI. The company states that owning all four layers allows it to optimize the price performance of AI solutions.

Google Cloud has a diverse client base in India, spanning industries such as banking, financial services and insurance (BFSI), retail, manufacturing, telecommunications, and startups. Some of its clients include HDFC, ICICI, Federal Bank, Flipkart, and Reliance Group. Google Cloud and PwC India have also enhanced their strategic alliance to transform enterprise solutions with Generative AI (GenAI). This partnership combines Google Cloud's AI expertise with PwC India's industry insights to develop GenAI solutions for key business operations across sectors like tax, healthcare, and legal services.

While Google Cloud's global business has seen substantial growth, its Indian operations experienced a slowdown in revenue growth, reporting a 9.5% increase for the year ended March 2024. This is in contrast to the near doubling of revenue in the previous fiscal year and the 26% global growth. Despite this, India remains a strategically significant market for Google Cloud, with ongoing investments and initiatives aimed at strengthening its position and supporting the country's digital transformation.