(MENAFN- KNN India)
New Delhi, Sep 6 (KNN) Amazon Inc. has announced plans to significantly increase its exports fr0m India, targeting USD 5 billion worth of small-ticket items in 2024, up fr0m approximately USD 3 billion in 2023.
This move, revealed by a company official, marks a notable shift in Amazon's sourcing strategy, with India emerging as a key supplier for markets such as the United States and Britain.
The e-commerce giant's decision reflects a broader trend among multinational corporations to diversify their supply chains away fr0m China.
Walmart Inc., another major player in the retail sector, has also outlined ambitious plans to increase its sourcing fr0m India, aiming to reach USD 10 billion annually by 2027, up fr0m about USD 3 billion in 2020.
Bhupen Wakankar, director of global trade at Amazon, stated in an interview, "India is naturally one of the largest sources of selection for Amazon."
The company has partnered with India's commerce ministry and trade associations to connect with thousands of small manufacturers across the country, focusing on products ranging fr0m textiles and jewellery to household items and Ayurveda products.
These smaller items are particularly suited for direct international shipping and are less impacted by import taxes compared to higher-value goods.
Wakankar emphasised Amazon's commitment to supporting Indian sellers, stating, "We are investing significantly in tools and technologies to help sellers optimise their reach, enhance product discovery, and increase sales."
Amazon's Global Selling Programme, initiated in 2015, has already enabled approximately 150,000 small Indian exporters to sell about USD 8 billion worth of products directly to overseas consumers by the end of 2023.
The company aims to facilitate USD 20 billion in cumulative e-commerce exports fr0m India by 2025.
While Amazon and Walmart's Flipkart have significantly reshaped India's retail landscape through substantial investments and discounting strategies, they have faced criticism fr0m trading groups and political figures.
India's commerce minister has previously accused e-commerce companies of predatory pricing practices and expressed concerns about the sector's impact on traditional brick-and-mortar stores.
Despite these challenges, Amazon continues to invest heavily in India. Last June, the company announced plans to increase its investments in the country to USD 26 billion by 2030, including funds for its cloud business.
This shift towards increased sourcing fr0m India underscores the country's growing importance in global supply chains and highlights the evolving strategies of major e-commerce players in response to changing economic and geopolitical dynamics.
(KNN Bureau)
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