Amazon’s $35 Billion Investment in India

Amazon will invest over $35 billion in India in the next five years, as announced by the company on Wednesday. This investment plan covers all business areas, aiming to strengthen its commitment to enhancing India’s digital economy, artificial intelligence sector, and local employment opportunities.

Details of the Announcement

The announcement was made during the sixth edition of the Amazon Smbhav Summit held in New Delhi.

Previous Investments

This new investment adds to the nearly $40 billion that Amazon has previously invested in India over the course of the last 15 years.

Economic Impact Report

A key highlight of the event was the release of the Economic Impact Report by consulting firm Keystone Strategy. The report showcases Amazon’s growing investment in India, illustrating how its infrastructure and employee compensation initiatives have established it as the leading foreign investor in the country, a significant facilitator of e-commerce exports, and a major job creator.

Amazon’s Investment Plans

Amazon presented three main pillars for its upcoming investments: AI-driven digitisation, export growth, and job creation, all of which align with India’s larger digital and economic objectives.

Infrastructure Investments

Amazon states that it has made substantial investments in both physical and digital infrastructure across India. This includes fulfilment centres, transportation networks, data centres, digital payment frameworks, and technological platforms.

Job Creation Statistics

The findings from Keystone indicate that Amazon has digitised over 12 million small businesses, facilitated $20 billion in cumulative e-commerce exports, and supported approximately 2.8 million jobs, which encompass direct, indirect, induced, and seasonal roles across various sectors such as technology, operations, logistics, and customer service. The roles are supplemented with benefits including competitive wages, healthcare, and formal training.

Future Job Projections

Amazon projects the creation of an additional one million direct, indirect, induced, and seasonal jobs in India by 2030. This job growth is expected to be fuelled by ongoing business expansion, an expanded fulfilment and delivery network, and increased demand in related sectors like packaging, manufacturing, and transportation.

Artificial Intelligence Initiatives

In its long-term vision, Amazon aims to broaden access to artificial intelligence throughout India, providing AI tools to businesses, consumers, and students.

Aiming for Small Business Access

By 2030, Amazon intends to deliver AI benefits to 15 million small businesses. Currently, sellers on Amazon are already utilising AI-driven tools like Seller Assistant and cutting-edge selling solutions. The company is also focused on improving shopping experiences for hundreds of millions of users through innovative AI features, including visual discovery with Lens AI, interactive shopping through Rufus, and multilingual interfaces to mitigate literacy obstacles.

Empowering Students through AI Education

Furthermore, Amazon is dedicated to empowering four million government school students with AI education and career exploration through structured curricula, technology career tours, practical AI sandbox experiences, and teacher training. This initiative is set to be implemented in collaboration with technology experts and nonprofit organisations, aligning with India’s National Education Policy 2020.