Amazon has invested about USD11 billion in India and plans to inject more capital worth USD15 billion in the next seven years.
Heaptalk, Jakarta — Amazon plans to increase its investment becoming USD26 billion, approximately (Rp 391.17 trillion) by 2030. This announcement was made by Amazon’s CEO, Andy Jassy, during the meeting agenda with India’s Prime Minister (PM), Narendra Modi.
In more detail, this giant e-commerce company has previously invested about USD11 billion in India and plans to inject more capital worth USD15 billion in the next seven years. Most of the new investment is likely earmarked for AWS expansion in this country. However, Amazon said last month that the company plans to invest in its cloud business worth USD12.7 billion in South Asia by 2030.
“A productive meeting with PM Narendra Modi to discuss Amazon’s commitment to invest USD 26 billion in India by 2030. With this move, we will back startups, create job vacancies, increase export activities, and encourage individuals and MSMEs to compete globally,” Amazon’s CEO said on his Twitter account.
Previously, Amazon also announced plans to invest USD6.5 billion to boost its e-commerce business to compete with its rival Walmart’s Flipkart and billionaire Mukesh Ambani’s reliance Retail company. The new investment amount committed now comes to around an additional USD6.5 billion.
This latest move links with Amazon’s deepening focus on strengthening its infrastructure and reaching customers in India, which holds bright prospects for e-commerce and cloud businesses. Moreover, the move bodes well with the company’s pledge to build digital centers in 100 cities and villages in India. This proposed intention is expected to back more than 10 million SME businesses coming online. Further, the company also aims to make exports of products made in India at USD20 billion and create two million jobs by 2025.
Besides the growing investment plans, Amazon inaugurated its fourth office in Tamil Nadu last year and launched the robotics software development center in Bengaluru, Karnataka, to introduce robotics advancements in India. Amazon’s growth prospect in the Indian market is expected to contribute to its overall financial performance, which, in turn, will instill investors’ optimism in the stock.
“We believe these initiatives, as mentioned earlier, are expected to continue strengthening Amazon’s presence in India, where digitalization has advanced to a much higher level, leading to increased growth opportunities,” said the management.
