Google is investing another $1 billion in India's smartphone market

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Google is investing another $1 billion in India's smartphone market
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Google is investing up to $1 billion in a major Indian telecom company, a move it hopes will drive down the cost of smartphones in a huge and rapidly expanding market

Google said in a statement Friday that it would invest $700 million in Bharti Airtel, India's second-largest telecom operator, and acquire a 1.28% stake in the company. An additional $300 million would be used for potential multi-year commercial agreements, the companies added. According to Airtel, the two companies want to work with device manufacturers to "bring down the barriers of owning a smartphone across a range of price points.

And unlike its more populous neighbor China, India has been welcoming huge amounts of investment from American tech: Facebook , Google, Amazon , Netflix and others have already invested billions of dollars into growing their Indian operations.Read MoreGoogle alone has already put up some serious cash in India, including a $4.5 billion investment two years ago in Jio Platforms, an Airtel rival that is part of billionaire Mukesh Ambani's tech empire.

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