Google Is “Excited”: And You Should Be Too

July 10, 2025

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Why in the news?

Google has officially launched its much-anticipated AI Mode in Google Search in India, and it couldn’t have come at a better time. This rollout comes after India repealed the so-called “Google Tax”, following escalating tariff tensions linked to the Trump administration’s global trade policies.

The “Google Tax” refers to the “Equilisation levy”, a tax on revenue earned by foreign digital companies from Indian users, primarily on online advertising and e-commerce.

It taxed 6% on online advertising and related digital services and 2% on e-commerce transactions.

Both of these taxes are repealed as of July 2025, making it easier for foreign companies to operate in India without having a physical presence.

Meet Google AI Mode

Google’s new AI Mode in Search represents a significant shift in how we use the internet to find information.

Instead of just showing a list of links when you type something, this new feature gives you complete answers in a more natural and friendly way. It understands your full question, even if it’s long or detailed, and gives a clear, helpful response.

It uses advanced AI called Gemini and a system called the Search Generative Experience to pull the best information from across the web.

For example, if you ask: What’s a marketing strategy to promote my brand Neela with a ₹15,000 budget across platforms to maximise ROI?”

Google’s India Vision: Bigger, Bolder, Smarter

India continues to be one of Google’s most valuable markets — not just in terms of scale, but in terms of growth potential. Google India’s FY24 revenue stood at ₹5,921 crore, a 26% jump from the previous fiscal year’s ₹4,700 crore.

With nearly ₹31,000 crore of that stemming from advertising, Google is doubling down on AI to further optimise ad performance and extract deeper value from its Indian operations.

Among its new rollouts is AI Max for Search Campaigns: a tool that helps advertisers refine their campaigns by analysing landing pages, current keyword lists, and historical ad performance.

Global brands like L’Oréal have already seen impressive results: a 2X increase in conversion rates and a 31% drop in cost-per-conversion, thanks to AI Max’s ability to unlock untapped search opportunities.

What’s Next?

Google’s journey in India is far from over. With the launch of AI Mode in Search and a full-fledged integration of AI into advertising, the company is positioning itself not just as a tech leader but as a partner in India’s digital transformation.

So yes, Google is excited.
And we hope you are, too.

Credit for header image: Google

[This content is for informational purposes only and does not constitute legal, financial, or investment advice. This has been constituted based on third-party sources. We do not assume any liability for actions taken based on this information.]