Jio is one of the telecom services provided by Reliance industries. Probably, it is one of the top companies in Asia. As per the latest information, Facebook was interested to invest in Jio. Facebook CEO Mark Zuckerberg and Reliance Industries Chairman Mukesh Ambani were officially announced that they will work together for further development in India. Have a look on Mark words.
Reliance Industries Limited took a revolution in the Indian telecom sector through Jio. It provides good services at cheap costs. The other networks like Idea, Vodafone, Telenor, BSNL, and even Airtel were completely floored. Along with telecom services, Jio introduced many services like Jio fiber Internet facilities, manufacturing mobiles, TVs and Laptops, etc. But unfortunately, not all the services are completely available right now in India. Watch what Ambani says about this.
Why Facebook was interested to invest in Indian company Jio?
While coming to the country India is the second-largest populated country in the world. Over 560 million people in India using the Internet daily. And plenty of sources are available for investment of companies like Apple, Amazon, and Facebook, etc.
According to the recent surveys of Forbes Reliance Company Limited ranked one in India and got 106th place all over the world. So if, number one is here why would Facebook look for alternates? I don’t think so. Not only business ranking Reliance Companies maintain loyalty to their customers. So the popularity of this company also the reason to invest in it.
What does Facebook want with this deal?
To the extent of their community, Facebook wants to create an e-commerce service for new business entrepreneurs. India is the home of small businesses by young talented people. Over 60 million small business entrepreneurs in India. So, Facebook wants to create opportunities for entrepreneurs and also jobs in India. In return, they wish to extend their community all over India.
To achieve this, Facebook invested in Reliance Jio with $5.76 Billion which means 43,574 crore rupees in Indian currency for buying 9.99% stack in Jio. By Mark’s words, we can estimate that the coming days are fully connected with the online business service. Jio has already done an experiment with Jio marts on specific and limited areas in our country. But they were in beta state so not fully accessible.
In what way the deal helps Jio?
We already knew Jio gives quality services at cheap costs or some times they give for free of cost. No company dares to invest their total income on one particular project. So, Reliance Industries invested their profits only on this Jio telecom services. But that is not sufficient to establish the Jio network. So, they took money as debt from banks.
With this investment of Facebook, Jio pays around 20 to 25% of their debts. And also able to provide new services to the people. So the company reputation in India will increase a bit more. We need to wait for the official announcement from them whether they continue with the Jio marts or anything else.
How it’s better for the common people in India?
Of course, it can be helpful. In India, unemployment is a major problem. So Facebook intentionally pointed on this group. With this deal, there are a lot of jobs created for normal people and also there is an opportunity for your young and talented business entrepreneurs. By this unemployment can be reduced to some extent. This will effects the countries’ growth indirectly.
However, Monopoly in any sector is not safe for country development. But for now, it is the only option the country looks on. Facebook CEO Mark announces that they are mainly focusing on e-commerce services and works for business entrepreneurs in India. In the coming days, we need not go for a market to buy products and safe online transactions are occuring. The present corona outbreak is also one of the reasonss to initiate this project.
Is it helpful for Indian economic growth?
Not only India any country in the world depends on business to develop its economy. On this basis, this Foreign Direct Investment FDI helps India to increase its economy not totally but up to some extent. And also they are going to introduce a new type of payment called crypto type currency network. This helps our payments safe to all over India.
The Indian government approved to introduce a new type of blockchain technology. Both of this cryptocurrency and blockchain helps to control the illegal black money usage in India. Possibly, this will affect the country’s economy.
Am I the only one who is eagerly waiting for this project?