Tuesday, 02 January 2024 12:17 GMT

Amazon Eyes Deeper India Expansion With $35 Billion Pledge


(MENAFN- The Arabian Post)

Amazon has pledged to invest more than $35 billion in India by 2030, targeting a significant expansion of its technology, logistics, and export operations across the country. The announcement, delivered on 10 December at the Amazon Smbhav Summit in New Delhi, follows previous investments totalling about $40 billion since 2010 - including a $26 billion commitment in 2023.

The funding will be channelled along three strategic pillars identified by Amazon: AI-driven digitisation, export growth and job creation. The company intends to leverage artificial intelligence to reshape its marketplace operations and support small and medium-sized enterprises.

Amazon aims to boost cumulative exports from Indian sellers - which hit over $20 billion - to $80 billion by 2030. That step would represent a four-fold increase in volume while providing an impetus to local manufacturing, packaging, logistics and supply-chain networks.

As part of this push, the firm expects to generate at least 1 million new employment opportunities across direct, indirect and seasonal roles by the end of the decade. These would be distributed across technology, operations, logistics, fulfilment and customer support functions.

The announcement by Amazon aligns with similar large-scale commitments from other global tech players. A day earlier, Microsoft committed $17.5 billion for cloud and AI infrastructure in India, while Google has floated plans to inject about $15 billion over five years towards AI data-centre development in the country.

Amazon's renewed commitment comes against a backdrop of intensifying competition in India's e-commerce and delivery space. Firms such as Flipkart, along with app-based delivery services like Blinkit, Swiggy-led Instamart and Zepto, have rapidly expanded consumer-facing logistics, creating pressure on legacy players to scale up technological and operational capabilities.

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According to a report by consultancy Keystone Strategy, Amazon's past investments helped digitise over 12 million small businesses, enabled more than $20 billion in exports and supported around 2.8 million jobs as of 2024. The upcoming investment aims to deepen that impact by extending digital infrastructure, training, fulfilment and AI-powered tools to more businesses.

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The Arabian Post

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