NEW DELHI: In what will perhaps be India’s single-biggest foreign investment inflow, American e-commerce and tech giant Amazon on Wednesday committed a mega $35 billion to boost its operations in the country as it adds to the $40 billion-plus it has already put into the market since 2010.
The new funds will be invested by 2030, and were announced a day after another American tech giant, Microsoft, committed a $17.5 billion investment plan for India when its CEO Satya Nadella came visiting.
At its annual ‘Smbhav’ summit in the national capital, Amazon said it will increase investments across all its businesses, focusing on expansion as well as three strategic pillars: AI-driven digitization, export growth, and job creation.
The company aims to support a total of 3.8 million jobs in the country over the next five years, and enable $80B in cumulative e-commerce exports. Also, its target is to deliver AI benefits to 15 million small businesses as well as its consumers.
“We are humbled to have been a part of India’s digital transformation journey over the past 15 years, with Amazon’s growth in India perfectly aligned with the vision of an Atmanirbhar and Viksit Bharat. We have invested at scale in growing the physical and digital infrastructure for small businesses in India, creating millions of jobs, and taking Made-in-India global,” Amit Agarwal, Senior VP for Emerging Markets at Amazon, said. “Looking ahead to 2030, we're excited to continue being a catalyst for India’s growth, as we democratize access to AI for millions of Indians and quadruple cumulative e-commerce exports enabled to $80 billion. In 2030, Amazon businesses will support 3.8 million direct, indirect, induced and seasonal jobs.”
Through the new investments, the company aims to accelerate digital transformation, strengthen infrastructure, and support innovation in India. “These investments are strategically aligned with India's national priorities and will focus on expanding AI capabilities, enhancing logistics infrastructure, supporting small business growth and creating jobs.”
Amazon has a plan to create direct and indirect employment across verticals. It said that in 2024, it supported approximately 2.8 million direct, indirect, induced and seasonal jobs spanning technology, operations, logistics, retail, and creative services. “In 2030, the company will support 3.8 million direct, indirect, induced and seasonal jobs. These will stem from Amazon's business expansion as well as its growing fulfillment and delivery network, which simultaneously supports parallel industries including packaging, manufacturing, and transportation services.”
Amongst its other key focus areas is to enable higher exports from India. “As Amazon Global Selling completes ten years of operations, Amazon-enabled exports from India have surpassed $20 billion. The company has now set a goal of enabling $80 billion in cumulative e-commerce exports by 2030.”
Taking a step toward this goal, Amazon has launched "Accelerate Exports," a manufacturing-focused initiative designed to connect digital entrepreneurs with trusted manufacturers while enabling manufacturers to become successful global sellers. “As part of the program, Amazon will host on-ground onboarding drives in over ten manufacturing clusters across India, including Tirupur, Kanpur, and Surat.”
Bringing AI education to students, entrepreneurs, and customers across India is also part of the expansion plan. “Amazon's comprehensive AI commitment will transform India's digital landscape to support the govt’s vision of ‘AI for All’. By 2030, Amazon plans to bring benefits of AI to 15 million small businesses, with sellers on Amazon.in already using AI-powered tools like Seller Assistant, Next-Gen Selling, and others.” Also, the company plans to enhance shopping experiences for its shoppers through AI innovations, and multilingual experiences.
It also looks to tap into four million govt school students with AI education and career exploration opportunities through AI curriculum, technology career tours, hands-on AI sandbox experiences, and teacher training programs. “This initiative supports India's National Education Policy 2020 by democratizing AI education through Amazon's technology expertise and nonprofit partnerships.”
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