In a significant announcement, American tech giant Amazon has pledged to invest an additional $15 billion in India over the next seven years. The commitment comes as Amazon aims to strengthen its presence in the country and contribute to India’s digital growth. This move follows a meeting between Amazon Chief Executive Officer Andy Jassy and Prime Minister Narendra Modi. The investment aims to support the digitization of small businesses, foster exports, and create job opportunities in India. With this new commitment, Amazon’s total investment in India is set to reach a staggering $26 billion across various business sectors.
Amazon’s Ambitious Goals for India
During the meeting with Prime Minister Modi, Andy Jassy outlined Amazon’s ambitious goals for India. The company has set its sights on digitizing 10 million small businesses, facilitating $20 billion in exports, and generating two million jobs in India by 2025. These targets demonstrate Amazon’s commitment to supporting India’s digital economy and empowering local entrepreneurs. Notably, Amazon has already made significant investments in India, including $11 billion to date.
Progress Made and Future Plans
Amazon India has made substantial progress towards achieving its goals. Currently, the company is on track to deliver on its commitments, having already digitized over 6.2 million small businesses, facilitated over $7 billion in exports, and created more than 1.3 million direct and indirect jobs. These achievements reflect the positive impact of Amazon’s initiatives on the Indian economy.
Amazon’s Journey in India
Amazon’s journey in India began a decade ago with just 100 sellers. Today, the company empowers over 12 lakh (1.2 million) Indian businesses to sell millions of products online, serving customers across the country. The company’s e-commerce platform has provided a vital channel for Indian sellers to reach a wider customer base, expand their businesses, and thrive in the digital marketplace.
The Importance of Investment in India’s Digital Growth
According to The Hindu businessline News, Amazon’s significant investment in India highlights the country’s potential as a key market for global tech giants. India’s growing population, expanding middle class, and increasing internet penetration make it an attractive destination for digital businesses. By investing in India, Amazon aims to tap into this immense potential and contribute to the country’s economic growth.
Google’s Fintech Operation Centre in GIFT City
In addition to Amazon’s investment, another tech giant, Google, has made noteworthy commitments to India. Sundar Pichai, CEO of Google and Alphabet, announced the opening of a global fintech operation centre in GIFT City, Gujarat. This move is part of Google’s $10 billion investment in India’s digitization fund. Pichai acknowledged Prime Minister Modi’s vision for Digital India and commended India’s progress in the fintech landscape. Establishing the fintech centre in GIFT City is a testament to India’s growing prominence in this sector.
Reactions and Outlook
The announcements made by Amazon and Google have been welcomed by industry experts and government officials alike. Tapan Ray, MD and Group CEO of GIFT City, sees Google’s decision to establish its fintech operations centre in GIFT City as a significant milestone that aligns with India’s vision of becoming a global fintech hub. These investments not only bolster India’s digital infrastructure but also create new opportunities for job growth and technology innovation.
