With its massive population, burgeoning middle class, and rapidly growing digital landscape, India has emerged as a captivating market and a highly sought-after destination for foreign global tech behemoths. This was underscored yet again, after e-commerce mammoth Amazon announced its plans to invest an additional $15 billion in the South-Asian market, bringing its total investment in the country to an impressive $26 billion. The announcement came after a meeting between Amazon CEO Andy Jassy and Prime Minister Narendra Modi during the former’s visit to the US and came after a week wherein several foreign enterprises (namely Tesla, SpaceX, and Micron) mulled over making their debuts in the world’s second-largest internet market.
Amazon says that it plans to more than double its investment in India in the next seven years to add to the $11 billion it has poured in the country – which remains one of its key overseas markets despite the recent closure of several of Amazon’s businesses in India – to date. Amazon CEO Andy Jassy called his meeting with Indian PM Narendra Modi a “productive” one, wherein both the Centre and Amazon intend to provide a helping hand to Indian startups, create jobs and enable exports and digitization, as well as empower individuals and small businesses alike to compete in the international arena.
Productive meeting with Prime Minister @NarendraModi. Discussed Amazon’s commitment to invest $26B in India by 2030; working together we will support startups, create jobs, enable exports, and empower individuals and small businesses to compete globally. pic.twitter.com/yEgy0TVqpK
— Andy Jassy (@ajassy) June 23, 2023
Amazon’s investment in India is significant, and helps the country reinforce its attractiveness as a destination for foreign direct investment (FDI), also showcasing foreign confidence in India’s business environment, specially when a China alternative is being search for and global economic conditions are tough. The increased FDI inflow resulting from Amazon’s investment is expected to have a multiplier effect on the Indian economy, stimulating economic growth, fostering entrepreneurship, and contributing to the country’s GDP. This announcement also comes after Amazon Web Services (AWS) – Amazon’s cloud computing unit – announced its plans to invest a total of $12.7 billion in India by 2030.
India’s digital landscape is also evolving rapidly, and Amazon’s investment will play a significant role in fostering this transformation. The infusion of capital is also expected to contribute to the development of advanced technologies and digital infrastructure, including cloud computing, AI, ML, and IoT solutions. This, in turn, will empower Indian businesses to leverage cutting-edge technologies, enhancing their competitiveness and driving innovation across sectors, and working towards the Centre and PM Modi’s goal of a digital and self-reliant India, which Rajeev Chandrasekhar believes will help to further deepen the tech partnership between India and the US.
This big investment commitment by @amazonIN is to invest $26 billion by 2030 and create 20 Lakh jobs in India – is consistent wth PM @narendramodi ji’s vision of a Digital and Self-Reliant India n will help further deepen the #AI(America-India) tech partnership#ModiInUSA… https://t.co/HUJlI88k1K
— Rajeev Chandrasekhar 🇮🇳 (@Rajeev_GoI) June 24, 2023
Speaking of creating a fresh influx of jobs, Amazon has an ambitious target, according to its official statement. The company informed that it has pledged to digitise 10 million small businesses, enable $20 billion in exports, and create 2 million jobs in India by 2025. The company has already created over a million of direct and indirect employment opportunities in the country. So far, it claims to have digitised over 6.2 million small businesses, enabled over $7 billion in exports, and created over 1.3 million direct and indirect jobs.
With its expanded investment, Amazon will continue to generate a substantial number of jobs across various roles, including warehouse operations, logistics, customer support, and technology. Furthermore, the company’s commitment to upskilling and training programs will equip Indian workers with the necessary skills for the digital economy, fostering a more inclusive and empowered workforce.
In similar news, a global fintech operation centre may be opened in GIFT city in Gujarat. According to Google CEO Sundar Pichai, the company will have teams working on operations supporting its payment service GPay, as well as other product operations at Google. The company will also invest $10 billion in the India digitisation fund. “The PM’s vision for Digital India was way ahead of its time. I now see a blueprint that other countries are looking to do,” Pichai said.