U.S. tech companies look to capture a massive overseas middle class (and it’s not China)

American tech companies have long looked to the growing middle class in China as their next great market. But frustrations with China and a burgeoning interest from India is leading many companies to looking to market their products to that countries’ 1.25 billion people, according to the New York Times.

U.S. tech companies like Facebook, Google, Twitter and others are tiring of China’s internet censorship and difficult government policies, and see India as a more open market. In contrasting recent visits to the U.S., Chinese President Xi Jinping reinforced his countries’ commitment to the country’s internet policies, while Indian Prime Minister Narendra Modi met with tech leaders to emphasize the country’s desire for stronger ties with U.S. tech providers.

The population of India is rapidly becoming tech savvy. In just the past two years, the adoption of smartphones has jumped to 168 million, with estimates of 277 million internet users overall. More mobile Google searches are conducted in India than any country other than the U.S. The country also has the second-most Facebook users, behind only the U.S., with 132 million Indians on Facebook.

Now Facebook is planning to deepen its penetration in India. The company is offering a basic version that can run on slower networks and mobile devices, and is working with local companies to offer free services like news, job listings, and versions of Messenger and its social network aimed for lower-income Indians.