Hello, this is Priyanka Salve writing from Singapore.
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The success of the Gen Z protests in India has delivered an unexpected victory for Mark Zuckerberg’s Meta, cementing its position as the most influential social media company in the world’s largest democracy. However, the more power a government has, the stricter the government’s oversight.
This week, we explore how Meta’s growing influence could be a double-edged sword for the company.
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The Gen Z protests that shook India last week and forced Prime Minister Narendra Modi’s government to act on their demands marked the rise of two new political influencers in the world’s largest democracy.
One is the Gokiri Janta Party, a viral social media-driven youth movement that organized the protests. The second was Mark Zuckerberg’s short-video app Instagram, which was widely used by protesters to voice their concerns with the government and document their clashes with authorities.
The app’s appeal among young people was further demonstrated when Prime Minister Modi made his first selfie-style Instagram video on July 23 to reach Gen Z. It received over 300 million views within 24 hours and is currently approaching 400 million views. Since then, Mr. Modi has made more videos and even directed his ministers to increase their Instagram presence.
NEW DELHI, INDIA – JULY 20: Protesters take part in a demonstration organized by the Cockroach Janta Party (CJP) at Jantar Mantar on the opening day of the parliamentary monsoon session on July 20, 2026 in New Delhi, India. Protesters from all walks of life gathered in New Delhi on Monday amid an eruption of discontent over a range of issues and activist Sonam Wangchuck, who had fasted in protest on Sunday, was forced to hospital. (Photo by Ritesh Shukla/Getty Images)
Ritesh Shukla | Getty Images News | Getty Images
According to data from digital intelligence provider Sensor Tower. meta So far this year, WhatsApp has an average of 837 million daily active users in India, Instagram 501 million and Facebook 362 million. on the other hand, Google YouTube has 646 million and Elon Musk’s X has 15 million, making Meta the dominant social media company in India.
But Meta’s growing influence also exposes it to increased government scrutiny over content moderation, competition, privacy and digital payments, experts said, adding that U.S. social media companies face similar investigations in Europe and the United States.
Earlier this month, the Indian government issued a stern warning to Instagram to remove child abuse ads on its platform, following a warning to WhatsApp over the rollout of the username feature.
Local media also reported on Tuesday that the Ministry of Information Technology had summoned Meta’s head of global policy, citing concerns about the company’s “violations of information technology regulations and the spread of deepfakes on platforms such as Instagram and Facebook.”
The ministry was also reportedly embarrassed by the temporary restriction on access to Prime Minister Modi’s selfie-style videos on Facebook. India’s IT chief expressed his government’s displeasure with Mehta in an interview with news agency ANI, calling the move “disturbing”.
The growing influence of social media has left the government in a paradoxical situation where it wants to enforce compliance with these apps, but relies heavily on them to engage with millions of Indians, experts told CNBC.
growing influence
Rohit Kulkarni, managing director and senior analyst for internet and capital markets at Roth Capital Partners, told CNBC that “Instagram’s growing profile, especially among younger users and as a platform for public discussion, is reinforcing Meta’s dominant position in India’s digital ecosystem.”
Between July 18, the height of the protests, and July 26, Instagram’s average daily active users rose 16% year over year to 531 million, according to Sensor Tower. During this period, the number of daily active users on Instagram increased by 2.6%, while the number of active users on Facebook, YouTube, and WhatsApp remained roughly flat.
Analysis Mason partner Ujjwal Chowdhury told CNBC that “content consumption” via Instagram has skyrocketed in recent weeks, adding that political parties’ adoption of the platform will further drive adoption across older demographics and further solidify Meta’s dominance in the country.
India’s internet and smartphone user base is second only to China, but China banned US social media and messaging apps more than a decade ago, leading to the rise of local players such as WeChat, Weibo and Douyin. The American internet giant lost complete access to hundreds of millions of users, as well as major advertising and data revenues.
In contrast, Indian entrepreneurs have made several attempts to create social media challengers at home, with little success. Experts say the Indian market, with its largest youth population, holds great promise for major U.S. tech companies such as Meta.
Neil Shah, vice president of research at Counterpoint Research, told CNBC that Meta is “ahead” and “unparalleled” when it comes to social commerce, communications and ad targeting in India. Meanwhile, internet giant Google has a strong presence in web display and Android in-app advertising.
“Targeting is highly algorithmic and personalized, so the trust and authenticity that influencers provide on these (meta) platforms is critical,” he said.
Experts say increased engagement will lead to advertising growth for Mehta, and Instagram has been highly successful in attracting digital ad spend in India. However, they added that the country does not contribute significantly to Meta’s sales as the country has lower revenue per user compared to North America and Europe.
“India is one of Meta’s biggest long-term revenue opportunities,” said Roth Capital’s Kulkarni, adding that India is much more important to Meta today “strategically” than financially.
As a result, its platform serves as a kind of online public square that fosters tough debate and amplifies opposition voices, making it vulnerable to state action.
Mehta did not respond to CNBC’s request for comment.
need to know
Dr. Reddy’s CEO warns that generic drug prices will rise in the US due to tariffs
Erez Israel, chief executive officer of Indian pharmaceutical company Dr. Reddy’s Laboratories, told CNBC’s “Inside India” that U.S. President Donald Trump’s proposed tariffs on generic drugs would increase the price of generic drugs for patients in the country.
How India’s Gen Z forced Modi to listen, react and act
Prime Minister Narendra Modi’s government has bowed to pressure from student protests across India, an unusual move for a current government, underscoring the growing influence of Gen Z in the world’s largest democracy. On Saturday, India’s Education Minister Dharmendra Pradhan resigned, a key demand from student protesters who had expressed concern over the leak of exam question papers.
Temasek-owned Manipal Hospital raises over $1 billion in IPO
Temasek-owned Manipal Hospitals plans to raise 97.05 billion rupees ($1 billion) through an initial public offering. The issue comprises primary funding of over Rs 8,000 crore. The IPO opens on Wednesday and closes on Friday.
very soon
July 31: Manipal Hospital IPO completed.
August 5: Reserve Bank of India monetary policy decision.
