Google Expands AI Marketing Tools to India Following Digital Tax Repeal
Google launched its AI-powered advertising suite in India this month, bringing advanced marketing tools that debuted in the United States in May 2024. The tech giant’s expansion follows India’s decision to eliminate its controversial 6% digital advertising tax in March.
The Indian government scrapped the levy, commonly called the “Google tax,” making the South Asian market significantly more attractive to global technology companies. The tax previously applied to all digital advertisements served to Indian users, creating additional costs for international platforms.
Google’s new AI tools help businesses create, optimize, and target advertisements more effectively across its platforms. The suite includes automated campaign management, smart bidding systems, and performance analytics powered by machine learning algorithms.
India represents a massive opportunity for digital advertising growth, with over 750 million internet users and rapidly expanding e-commerce sectors. The country’s digital advertising market reached $3.2 billion in 2023, according to industry reports.
The tax repeal signals India’s shifting approach to regulating international tech companies. Previously, the government imposed various digital taxes to capture revenue from foreign platforms operating in the country.
Other major advertising platforms, including Meta and Amazon, are reportedly considering similar expansions into India following the regulatory changes. The move could intensify competition in India’s growing digital marketing landscape while providing local businesses with more sophisticated advertising options.
