Will keep Indian economy's momentum going: US-India forum hails Facebook-Jio partnership

Facebook's USD 5.7 billion investment in Reliance Jio in midst of coronavirus pandemic is a reflection of faith that foreign companies have in Indian ecomy's potential and future growth, a top US-based India-centric business advocacy group has said.

In an interview to PTI, US India Strategic and Partnership Forum (USISPF) president Mukesh Aghi said COVID-19 crisis has offered India best opportunity to attract foreign investment and replace China as world's manufacturing hub.

"I strongly feel that once COVID-19 crisis ends, India will have best opportunity to attract hundreds of se (foreign) companies into country," Aghi told PTI. It will t only create jobs but also bring in investments and keep Indian ecomy's momentum going. 

multi-billion-dollar investment anunced by Facebook in an Indian company in middle of coronavirus pandemic shows that India is still a very attractive market on digital commerce side, he said.

Read full statement of Facebook's $5.7 Billion investment into Jio Platforms for 9.99%

Facebook invests $5.7 Billion Into Jio Platforms

In a massive development, Facebook on Wednesday anunced an investment of USD 5.7 billion (Rs 43,574 crore) for acquiring a 9.99% mirity stake in Jio Platforms Ltd as it looks to expand presence in its largest market in terms of subscriber base. Additionally, Reliance Industries Limited also issued a statement to same effect. It also added that along with Facebook, it has also entered into a commercial partnership agreement with Whatsapp. 

Here's where Zuckerberg's Jio Platform deal stands in list of Facebook's large investments

"Today, we are anuncing a USD 5.7 billion, or Rs 43,574 crore, investment in Jio Platforms Limited, part of Reliance Industries Limited, making Facebook its largest mirity shareholder," Facebook said in a statement.

Statement by Reliance Industries Limited

Releasing its statement, Reliance Industries Limited said that it is signing 'binding agreements for an investment of Rs 43,574 crore by Facebook into Jio Platforms. This investment by Facebook values Jio Platforms at Rs 4.62 lakh crore pre-money enterprise value. Facebook's investment will translate into a 9.99% equity stake in Jio Platforms on a fully diluted basis."

Calling partnership 'unprecedented', Reliance industries in its statement added that it is largest FDI in techlogy sector. It said that goal of investment is to enable new opportunities for businesses and create new and exciting digital ecosystems to empower 1.3 billion Indians. It also said that partnership assumes special significance amid disruption caused by coronavirus outbreak, adding that 'comprehensive digitalisation' will be a 'necessity for revitalisation of Indian ecomy.'

(with PTI inputs)

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