Amazon commits to exporting $20 billion from India by 2025 – TechCrunch
Amazon said Wednesday that it aims to export $20 billion worth of domestically produced Indian goods by 2025, doubling initial goal is 10 billion dollars is set in the same timeframe as the e-commerce group that attracts more than 100,000 exporters in the key overseas market.
The company – which launched its export program, called Amazon Global Sell, in India in 2015 – took three years to reach $1 billion in exports from the country, it said. The company added the last $2 billion in just 17 months, it said at a virtual event Wednesday. In total, the company says it is on track to achieve $5 billion in cumulative exports from India.
“We are delighted to build 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 bringing India has become an export powerhouse,” said Amit Agarwal, SVP of India and Emerging Markets for Amazon, at the event.
The company has enabled merchants from India to sell to customers worldwide through Amazon’s 18 international sites, including in countries such as the US, UK, Canada, Mexico, Germany, and Spain. Nha, Australia and France.
At an event in New Delhi in early 2020, led by company founder Jeff Bezos, Amazon pledged to export $10 billion worth of goods made in India by 2025. At the time, “Our hope is that this investment will bring millions more to India’s future prosperity and show the world ‘Made in India’ products,” said Bezos. India’ represents the rich, diverse culture of India. “
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 unveiled an investment of more than $6.5 billion in India, actively betting to make the world’s second-largest internet market its next big region.
But the company’s ambitions have met with obstacles at home. It has been the subject of many investigations, an antitrust investigation in the country and had to lock lips with Reliance Retail, the largest retail chain in the country run by Mukesh Ambani, one of Asia’s richest men.
The American company has spent more than two and a half years in multiple courts fighting to prevent a merger between Reliance Retail and Future Retail, the country’s second-largest retail chain. (Amazon is an investor in a unit of Future Group.) Its wish came true, last month after Reliance cancels $3.4 billion merger deal with Future Retail. However, the country’s most valuable company succeeded in expanding its store network with Future assets by ingenious brokerage transactions with land owners and shop owners who leased the facilities to Future.
In a newspaper ad earlier this year, Amazon accused its estranged partner and Reliance of infatuating frauds and try to “remove the basis of the dispute.”
“MSMEs are the backbone of the Indian economy, contributing to around a third of India’s GDP and driving almost half of the country’s exports,” said Narayan Rane, Union Minister for Small and Medium Enterprises, said in a statement today.
“Enhancing the export potential of India’s MSMEs is a top priority for the government and efforts are being made to assist Indian MSMEs in achieving international success. Amazon’s continued efforts to increase the share of MSME exports are commendable, and its commitment to enable $20 billion in exports by 2025 is timely. I would like to congratulate Amazon and all MSMEs for playing an important role in driving export-led growth to help realize the vision of an Aatmanirbhar Bharat. ”