Amazon To Invest $15 Bn More In India By 2030

Following a meeting with India’s Prime Minister Narendra Modi, Amazon CEO Andy Jassy said that the ecommerce giant will commit another $15 Bn to India over the next seven years, taking Amazon’s total investment in India to $26 Bn.

“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,” said Jassy in a tweet on Saturday (June 24).

The development comes as Amazon’s cloud business AWS announced its plans to invest $12.7 Bn to expand its cloud infrastructure in India last month. As such, a majority of the $15 Mn investment might flow into AWS.

To be sure, Amazon has already invested nearly $11 Bn in the country so far, becoming one of the largest ecommerce marketplaces by market share in India, ahead of the likes of Meesho and Udaan and only behind Walmart-owned Flipkart, which dominates India’s ecommerce landscape.

Even as Amazon has shut down several businesses in India in recent quarters, it remains a key overseas market for the US-based ecommerce giant, which recently completed a decade in India.

The investment in India from Amazon also comes in the wake of reports from earlier this year that its global rival Walmart was readying more than $2.5 Bn to spend on Flipkart and PhonePe.

Amazon’s commitment follows a host of deals signed as PM Modi visited the US on a state visit earlier this week.

Besides Amazon, Google has committed to establishing its global fintech operation centre in GIFT City, Gujarat, and chipmaker Micron Technology has committed to setting up a DRAM and NAND ATMP facility, with an investment of $2.75 Bn. 

Further, Applied Materials will set up a semiconductor centre for commercialisation and innovation in India, investing $400 Mn in India over the next four years. Lam Research will establish a training programme, training up to 60,000 engineers.

Tesla’s CEO Elon Musk has also committed to entering the Indian market as the electric carmaker explores setting up a manufacturing and R&D facility in the country.