Saturday, November 9, 2024

Location wars: How a newly liberalised sector in India is hotting up

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Nearly two years after India opened up an insular and heavily regulated sector to private companies, it has become hyperactive. India’s map industry, which was largely a domain of the government, is now a hotly contested field.

A few weeks ago, Google, which has become synonymous with maps, thanks to the ubiquity of Google Maps mobile app, announced that it is introducing India-specific pricing for developers using the Google Maps platform with up to 70% lower costs on most APIs. Later, Google announced a slew of new features on Google Maps to woo Indian users, including EV charging station information, flyover callouts and AI-driven routing capability to reduce narrow road usage for four-wheeler drivers. It is “an exciting time in mapping”, Google Maps said announcing the new lineup

What changed? After the government’s liberalised geospatial policy, local rivals are now giving stiff competition to global major Google.

India’s map wars have begun

Not so long ago, maps used to be seen as an academic or government thing. Today, maps have emerged as valuable data with huge commercial potential. From agriculture to mining to doorstep delivery, various industries now use maps as a key business asset. That’s why India is witnessing map wars.Google announced price cuts after Ola rolled out Ola Maps, the digital mapping solution created using proprietary and open data including real-time data of the Ola fleet and open-source government data repositories, OpenStreetMaps. Ola founder Bhavish Aggarwal announced a one-year free access to all developers to shift to Ola Maps on artificial intelligence (AI)-driven Krutrim platform, along with more than Rs 100 crore in free credits. On July 6, Ola said it had exited Google Maps and shifted to its in-house navigation system for its cab operations. The move has reportedly saved the company nearly Rs 100 crore a year. Slamming Google’s “belated” price cuts, Aggarwal responded with a more aggressive price cut for Ola Maps. “It’s time we build world class alternatives to big tech giants and empower Indian innovation! I’m very excited to announce a further reduced pricing structure and our future product roadmap for Ola Maps @Krutrim,” he wrote on X.

A few days ago, homegrown digital mapping services company MapMyIndia, a chief rival of Google Maps, sued Ola for allegedly stealing its data and breaching the license agreement to create Ola Maps, according to reports. CE Info Systems, the parent company of MapMyIndia, which had provided services to Ola, has said that the latter has “copied” MapMyIndia’s proprietary data by co-mingling and reverse engineering the licensed product.

Ola Electric has dismissed the claims made by CE Info Systems. “We would like to state unequivocally that these allegations are false, malicious and misleading. Ola Electric stands by the integrity of its business practices. We will suitably respond to the notice shortly,” a company spokesperson said in a statement.

How a new policy put a sector on fast track

Intense competition among private players for maps shows their core utility for a wide range of businesses and thus a vast potential for commercial gains. In addition to Ola, India’s own mapping companies such as MapmyIndia, Genesys International and RMSI – to name a few – are taking on Google, aided in part by a new policy that gave Indian companies a definite edge.

It all changed about two years ago when the government notified the National Geospatial Policy which liberalised regulations that applied to acquisition and production of geospatial data and services — including surveying and mapping — enabling Indian private firms to work without prior approvals. It unlocked tremendous opportunities for startups and the private sector in sectors such as e-commerce, delivery, logistics, Internet of Things (IoT), banking and financial services, emergency services, urban transport, agriculture and autonomous drones and vehicles.

Earlier, the government imposed significant restrictions on the mapping industry, requiring companies to seek licenses and follow a cumbersome system of pre-approvals and permissions. Due to restrictions, even the Survey of India, a government agency, had to take a series of permissions for its own work and its projects would get stuck for months.

The policy restricted foreign entities from doing ground survey and mapping. There are a lot of accuracy and depth reductions in maps produced by foreign players. They are also restricted from collecting, processing, publishing and hosting high accuracy/high-definition maps like 360-degree street view on their servers, while Indian entities are allowed to do so. International companies that capture data about India through satellite-based operations can continue to do so.

The advantage for Indian companies is that any geospatial data of spatial accuracy/value finer than the threshold value of one metre horizontally, and three metres vertically can be collected only by entities controlled by Indian citizens. Foreign companies can use that data but only by subscribing to it through APIs (Application Programming Interfaces) from Indian companies.

As per the government, India’s geospatial economy is expected to provide employment to more than 10 lakh people mainly through private geospatial companies. India’s geospatial market, including domestic and exports, is estimated to be worth approximately Rs 27,650 crore in 2025, rising from Rs 22,940 crore in 2019. The sector is expected to grow to Rs 63,000 crore by 2030, as per a Geospatial-Artha report.

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