Amazon Announces $35 Billion Investment in India, Eyes AI Push

Amazon has pledged to invest more than $35 billion into India through 2030, signalling a large investment into developing India's digital economy and infrastructure. The announcement was made during the sixth Amazon Smbhav Summit recently held in New Delhi. This new investment adds to Amazon's previous investment of nearly $40 billion in India making it one of the largest foreign investors in the country and a significant contributor to India's growth in e-commerce exports and employment.

Strategic Focus on AI, Exports, and Employment

Amazon's new investment will focus on 3 primary strategic pillars that will direct its business in India:

• Digitally enhancing the business with AI
• Increasing e-commerce exports
• Creating new jobs within India

With Amazon's investment, the company aims to enhance India's digital transformation by adding artificial intelligence to all its platforms and services. This will help small business owners to become empowered through technology, and preserve both the traditional skills and talent available.

Amit Agarwal, Senior Vice President of Amazon's Emerging Markets, stated that “The company's mission aligns with India's National Mission to create a self-reliant and developed Bharat." He also noted that “More than 12 million small businesses have been digitalised, together producing $20 billion worth of accumulated e-commerce exports. Together, these businesses support nearly 2.8 million job positions across multiple industries, including technology, logistics, and customer service."

Through its artificial intelligence (AI) initiative, Amazon intends to provide 12 million small and medium-sized enterprises (SMEs) access to AI tools to facilitate improved operation and increased levels of competitiveness. In addition to being provided with AI-enabled solutions (e.g., Seller Assistant, Next Generation Selling), SMEs now have the opportunity to learn about AI through educational resources provided by Amazon, as well as the government of India’s AI-based education programmes created to comply with the National Education Policy 2020.

What Does This Investment Entail?

In this investment, Amazon is looking to expand its physical and digital infrastructure throughout India. The investment will create:

• An additional number of fulfilment centres,
• Improve its transportation networks,
• Additional data centres,
• And enhance the use of digital payment methods for consumers.

This will allow Amazon to meet increasing customer demand, accelerate shipping times, and grow its physical network within rural and urban areas in India.

By the year 2030, Amazon expects its operations to support 3.8 million jobs directly, indirectly, induced, or on a temporary basis. This estimate includes jobs created within Amazon itself, as well as in related industries such as packaging, manufacturing, and logistics services that will see growth alongside Amazon’s supply chain.

Amazon’s impact on the economy goes beyond job creation. It also opens up opportunities for new and existing businesses and enables small sellers to export their products by giving them a platform to sell online. With its goal of helping create $80 billion in e-commerce exports in India by 2030, Amazon is becoming a vital partner in driving the country’s export economy.

What to Watch Next?

Amazon is using AI as a means to democratise access to technology and create growing opportunities for under-represented populations. With innovations such as visual product discovery through Lens AI, conversational shopping assistants, and multilingual user interfaces, Amazon is helping to remove the barriers to access that exist for hundreds of millions of Indian consumers who are unable to read or write.

To create an AI-ready workforce of digitally connected students and entrepreneurs, Amazon is investing in programmes that enable students and entrepreneurs to access a growing array of skills that will enable them to harness the power of AI for innovation. Amazon has aligned its long-term investment strategy with India's national strategic vision to create an ecosystem for the implementation of AI for economic and social advancement.

Sources:

Indian Retailer
Amazon
BBC
Business World
About Amazon
LiveMint