Facebook has 10.8 crore (or 108 million) monthly active users in India. These people spend a fourth of their online time on Facebook.
However, the company only earns 0.1% of its revenues from India. Something is amiss. Facebook founder Mark Zuckerberg probably aims to correct that when he lands in India on Wednesday to attend a two-day summit of Internet.org, a collective of governments and organisations.
However, the highlight of the visit will be his meetings with the government officials in an attempt to resolve challenges relating to taxation, privacy and legal barriers. As reported widely in the media, Zuckerberg has sought an appointment with Prime Minister Narendra Modi.
Here’s what the Facebook executive is expected to discuss with the Prime Minister.
1) Extending digital penetration
Of India's 1.2 billion people, only 12.6% of the country’s population has access to the internet. It's obvious that Zuckerberg would appreciate the government taking steps to bring more people online. That would not only increase Facebook's potential market, it would fit with Modi's plan to increase transparency through e-governance. Sheryl Sandberg, the COO of Facebook spoke about India's growing importance for the company when she was in the country 3 months ago. "India is Facebook’s second largest market, fastest growing market, fastest growing Internet connectivity in APAC. It is of high priority for us," she said in an interview.
2) Requests for user information
India ranks among the top five governments in terms of requesting users' private data from Google. Facebook received 3,598 requests from law enforcement agencies for the period July-December 2013. The requests made by the government to Twitter during the same period almost doubled from 16-27. For the tech revolution to take off, it's clear that the government needs to stop poking its nose in the personal lives of citizens. It is likely that Mark Zuckerberg takes this up in his meeting with PM Modi.
3) Clarifying Section 66A
In recent months, the police have jailed Facebook users under the Section 66A of the Information Technology Act for posts that the authorities considered objectionable. The authorities have the leeway to do this because the provisions of the Information Technology Act are vague about what it considers “menacing” and “grossly offensive”.
Facebook was mentioned in the list of 21 social networking sites which were asked to "monitor" and "censor" content by the Delhi High Court. Zuckerberg might seek some clarity on online freedom of expression in India.
4) Simplifying tax policies
It isn't easy for overseas organisations to do business in India, and the World Bank’s Ease of Doing Business Index reflects that. India ranks 134 on the list.
Vodafone has battled what it believes are arbitrary tax policies and Facebook is up next. The Delhi High Court has already raised questions over the company failing to pay service tax even as Google is doing so. Zuckerberg is likely to seek some clarity from the government and probably advocate more business-friendly taxation policies.
However, the company only earns 0.1% of its revenues from India. Something is amiss. Facebook founder Mark Zuckerberg probably aims to correct that when he lands in India on Wednesday to attend a two-day summit of Internet.org, a collective of governments and organisations.
However, the highlight of the visit will be his meetings with the government officials in an attempt to resolve challenges relating to taxation, privacy and legal barriers. As reported widely in the media, Zuckerberg has sought an appointment with Prime Minister Narendra Modi.
Here’s what the Facebook executive is expected to discuss with the Prime Minister.
1) Extending digital penetration
Of India's 1.2 billion people, only 12.6% of the country’s population has access to the internet. It's obvious that Zuckerberg would appreciate the government taking steps to bring more people online. That would not only increase Facebook's potential market, it would fit with Modi's plan to increase transparency through e-governance. Sheryl Sandberg, the COO of Facebook spoke about India's growing importance for the company when she was in the country 3 months ago. "India is Facebook’s second largest market, fastest growing market, fastest growing Internet connectivity in APAC. It is of high priority for us," she said in an interview.
2) Requests for user information
India ranks among the top five governments in terms of requesting users' private data from Google. Facebook received 3,598 requests from law enforcement agencies for the period July-December 2013. The requests made by the government to Twitter during the same period almost doubled from 16-27. For the tech revolution to take off, it's clear that the government needs to stop poking its nose in the personal lives of citizens. It is likely that Mark Zuckerberg takes this up in his meeting with PM Modi.
3) Clarifying Section 66A
In recent months, the police have jailed Facebook users under the Section 66A of the Information Technology Act for posts that the authorities considered objectionable. The authorities have the leeway to do this because the provisions of the Information Technology Act are vague about what it considers “menacing” and “grossly offensive”.
Facebook was mentioned in the list of 21 social networking sites which were asked to "monitor" and "censor" content by the Delhi High Court. Zuckerberg might seek some clarity on online freedom of expression in India.
4) Simplifying tax policies
It isn't easy for overseas organisations to do business in India, and the World Bank’s Ease of Doing Business Index reflects that. India ranks 134 on the list.
Vodafone has battled what it believes are arbitrary tax policies and Facebook is up next. The Delhi High Court has already raised questions over the company failing to pay service tax even as Google is doing so. Zuckerberg is likely to seek some clarity from the government and probably advocate more business-friendly taxation policies.
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