Amazon said on Wednesday that it aims to export $20 billion worth of locally produced Indian goods by 2025, doubling its value original goal of $10 billion scheduled for the same time frame as the e-commerce group attracts over 100,000 exporters in the important overseas market.
The company, which launched its export program called Amazon Global Selling in India in 2015, took three years to generate $1 billion worth of exports from the country, it said. The company added the last $2 billion in just 17 months, it said at a virtual event Wednesday. Overall, the company said it is on track to hit $5 billion in cumulative exports from India.
“We are pleased to create a strong foundation for MSMEs to realize their export potential, help them become globally competitive and contribute to the Honorable Prime Minister’s vision of making India an export powerhouse,” said Amit Agarwal, SVP of India and Emerging Markets on Amazon. At the event.
The company has enabled merchants from India to sell to customers worldwide through Amazon’s 18 international websites, including in countries such as the US, UK, Canada, Mexico, Germany, Spain, Australia and France, it said.
At an event in New Delhi in early 2020, led by company founder Jeff Bezos, Amazon pledged to export $10 billion worth of Indian-made goods by 2025. At the time, Bezos said, “Our hope is that this investment, raising millions, will involve more people in India’s future prosperity while introducing the world to ‘Make in India’ products that represent India’s rich, diverse culture.”
At the event, the company also announced an additional $1 billion investment in its Indian operations over the next five years. Amazon has so far announced an investment of over $6.5 billion in India and is aggressively betting on turning the world’s second-biggest internet market into its next big region.
But the company’s ambitions have encountered several obstacles in the country. It has been the subject of several studies a cartel probe in the country and had to compete with Reliance Retail, the country’s largest retail chain, run by Mukesh Ambani, one of the richest men in Asia.
The American company has been fighting in multiple courts for over two and a half years to stop the merger between Reliance Retail and Future Retail, the country’s second largest retail chain. (Amazon is an investor in a unit of Future Group.) His wish came true after Reliance last month terminated its $3.4 billion merger deal with Future Retail. However, the country’s most valuable company has managed to cleverly expand its branch network with future assets Mediation of transactions with property owners and shopkeepers who had leased the premises to Future.
In a newspaper ad earlier this year, Amazon accused its estranged partner and Reliance of indulging fraudulent practices and the attempt to “eliminate the substratum of the dispute”.
“MSMEs are the backbone of India’s economy, contributing around a third of India’s GDP and driving almost half of the country’s exports,” Narayan Rane, Union Minister for Small and Medium-Sized Micro Enterprises, said in a statement today.
“Increasing the export potential of Indian MSMEs is a key government priority and efforts are being made to help Indian MSMEs succeed in international markets. Amazon’s ongoing efforts to increase MSME exports are commendable, and their pledge to enable $20 billion worth of exports by 2025 is very timely. I would like to congratulate Amazon and all MSMEs for playing an important role in promoting export-led growth to help realize the vision of an Aatmanirbhar Bharat.”
Amazon pledges $20 billion in exports from India by 2025 – TechCrunch Source link Amazon pledges $20 billion in exports from India by 2025 – TechCrunch