Amazon's Jeff Bezos bets on India with $3 billion investment

Amazon has made steady inroads in India since entering the cut-throat, rapidly growing e-commerce market in 2013


Afp June 08, 2016
Jeff Bezos, (R), CEO of Amazon, is presented with the 2016 USIBC Global Leadership Award by Indian Prime Minister Narendra Modi during the 41st Annual Leadership Summit at the Mellen Auditorium, June 7, 2016 in Washington, DC. PHOTO: AFP

NEW DELHI: Amazon chief executive Jeff Bezos has pledged to invest $3 billion in India, in a big bet on the growth of online shopping in the fast-growing South Asian economy.

Speaking in Washington DC as India's Prime Minister Narendra Modi visits the United States, Bezos told a gathering of business leaders that he saw "huge potential" in India.

The investment, announced Tuesday, comes on top of $2 billion Amazon invested in India in 2014, and will boost Modi's campaign to attract foreign cash to create much-needed jobs.

"We have already created some 45,000 jobs in India and continue to see huge potential in the Indian economy," Bezos said at the US-India Business Council meeting, according to a statement from the group.

"Our Amazon.in team is surpassing even our most ambitious planned milestones," he said.

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Amazon has made steady inroads in India since entering the cut-throat, rapidly growing e-commerce market in 2013.

But it faces stiff competition from local rivals Snapdeal and Flipkart, which have attracted billions of dollars in overseas investment.

E-retailers in India, including Amazon, typically adopt a "marketplace" structure, acting as technological platforms that connect buyers and sellers rather than stocking their own products.

The government in March set new rules for foreign investment in online marketplaces, including allowing up to 100 percent foreign ownership.

India's e-commerce market was worth about $23 billion in 2015, according to business body Assocham.

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COMMENTS (9)

Patriotic Hindu | 4 years ago | Reply | Recommend Amazon investing another $3 billion in India to boost its operations and wipe out competetion from local companies like Flipkart, Snapdeal , Jabong etc. we need to take such investments with pinch of salts too. Flip side of such investments is also loss of jobs in other local companies , recently Flipkart postponed the induction of IIm ggraduates after being shortlisted during campus recruitment. Our rsponses needs to ne measured and devoid of rhetorics , else it exhbits immaturity and irrationality. India dont need to show off its strength to minnows and flex muscles, instead tactically should co-opt and work together to have commmon market in South Asia which will benefit all.
Anuj | 4 years ago | Reply | Recommend @ali Get rid of polio first.
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