Archive · 10 Aug 2026
Fund manager warns India sleepwalking into trillion-dollar Big Tech loss
A smart money expert in India named Harsh Gupta Madhusudan is worried about big American internet companies.
He says that every day, Indian people use websites and apps made by companies like Google and Meta.
Because these companies are so big, it is very hard for Indian companies to compete and win.
He thinks India is giving away at least one trillion dollars in value to these American companies.
He also worries that the American government can look at data about Indian people without getting permission from a judge first.
Another expert named Ajay Rotti says these companies do not pay taxes in India.
That is because they do not have offices in India, and the old tax rules say taxes depend on where you have buildings.
More than 140 countries agreed to make new tax rules, but the United States did not join.
Some people say free trade is good, but Madhusudan says even famous economist Paul Krugman agrees with parts of his argument.
This is a big argument about money, data, and what is fair.
Fund manager Harsh Gupta Madhusudan warned India is 'sleepwalking into 2035' and giving 'at least a trillion dollars of free market cap' to America.
He named Google and Meta as the biggest concerns, with Amazon, Flipkart and newer large language models also adding pressure on Indian platforms.
Madhusudan claimed US law allows the US government to access user data without a warrant, calling it a massive national security and data privacy issue.
Tax Compass CEO Ajay Rotti said India is collecting no taxes on digital ad revenue because Big Tech pays taxes only where it has a physical presence.
Rotti noted 140+ countries agreed under the OECD to change digital tax rules, but the Trump administration walked away from the deal.
- Who
- Indian equity strategist and fund manager Harsh Gupta Madhusudan, joined by Tax Compass CEO Ajay Rotti
- What
- Warned that India is handing at least $1 trillion in market value and over $100 billion in digital ad revenue to US Big Tech, while raising data privacy and digital taxation concerns
- When
- August 10, 2026, when Madhusudan posted his warning
- Where
- India, regarding its digital economy and US technology companies
- Why
- Because network effects and economies of scale create winner-take-all US platforms, and the absence of digital taxation means India collects nothing on digital ad revenue
Big Tech critics
Free trade advocates
Winner-take-all markets
Big Tech critics
Network effects and economies of scale create winner-take-all US platforms, so India must account for platform economics instead of relying on free trade.
Free trade advocates
Free trade and open markets ultimately benefit consumers and the economy; critics say some 'geniuses' mutter free trade without understanding trade theory.
Digital taxation
Big Tech critics
US Big Tech should pay taxes in the markets where digital ad revenue is generated; without digital taxation, India collects no tax on that revenue.
Free trade advocates
The Trump administration walked away from the OECD digital tax framework, keeping taxation tied to physical presence.
- Fund manager
- Harsh Gupta Madhusudan, Indian equity strategist
- Claimed value at stake
- At least $1 trillion in free market cap
- Digital ad revenue at risk
- Over $100 billion
- Companies flagged
- Google and Meta, plus Amazon, Flipkart and new large language models
- Tax expert quoted
- Ajay Rotti, CEO of Tax Compass
- Digital taxation deal
- 140+ countries agreed under the OECD; the Trump administration walked away
- Claim about startups
- Small Indian digital entrepreneurs are 'being extorted out of App Store fees'
- Date
- August 10, 2026