Search giant Google will soon surpass $1 billion in revenue from India till March 2015. According to company filings, Google crossed Rs 3,000 crore ($0.5 billion apprx.) in revenue for the year ending March 2014 which is 47% YoY growth.
Google's total revenue across the globe in 2013 was $59 billion.While revenue is growing, Google is also indulged in tax disputes. The company booked at total of Rs 311 crore as "income tax paid under protest" for assessment years 2007-13 as it continues to litigate tax claims made by Indian authorities.
Google India Pvt Ltd (Google India) had earlier reported revenues of Rs 2076.79 crore for the 12 month period ended 31st March 2013 (FY13), up a substantial 78.7% from 1162.19 crore from the previous financial year (FY12).
For companies like Google, Facebook and Twitter largest user base outside of the United States lives in India but earning revenues in emerging markets like India is a tough job. However, because of ongoing stiff competition amongst e-commerce companies in India like Flipkart, Snapdeal and Amazon, has given advantage to Google in India as they have increased their digital spending on online advertisements programs such as Google's Adwords.
Apart from E-commerce companies, SMBs in India is also key customers of Google giving revenue to search giant. Notably, India is fastest growing SMB market for Google AdWords. Small and midsize businesses are increasingly leveraging the Internet to generate more qualified leads and sales, and Google AdWords is doing well to grab its share of that digital advertising pie.
Moreover, India also witnesses General Elections this year which has given major boost to companies like Google. Google India witnessed substantial rise in its revenue this year with political parties spending more money on digital media than in the previous general election.
Google's advertising revenues from its government vertical is expected to rise 250-300% in 2014 just because of general election and four states assembly elections which had happened this year. According to advertising sector executives and experts, it's not just national parties such as the Congress and the Bharatiya Janata Party (BJP), but also smaller regional parties that are bumping up their digital ad budgets.
India's total campaign spend in political elections has been estimated at Rs.30,000 crore, according to a 9 March report by the Centre for Media Studies, which tracks election spending.
Google, which considers India as one of its fastest-growing markets, is also making large investments to the country. Recently, under an ambitious Android One initiative, Google brought local manufacturers together to bring down cost of mobile phones.
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