$35 billion spent in five years! Amazon (AMZN.US) increases investment in India to focus on business expansion and the three strategic pillars

The Zhitong Finance App learned that Amazon (AMZN.US) has promised to invest 35 billion US dollars in India over the next five years to increase investment in this key growth market. According to reports, Amazon has invested nearly 40 billion US dollars in India. The new investment will focus on business expansion including rapid e-commerce and cloud computing, as well as the three strategic pillars — AI-driven digital transformation, export growth, and job creation. This huge investment by 2030 will help create an additional 1 million jobs in India.

For large US internet companies such as Amazon and Google (GOOGL.US), India, the most populous country, is still a high-growth market despite regulatory hurdles and fierce local competition. Amazon is trying to keep up with competitors such as Flipkart under Walmart (WMT.US), Blinkit under Eternal, Instamart under Swiggy, and Zepto. Together, these companies have created a nearly even delivery service, which has been well received by Indian consumers.

According to recent reports, Amazon is speeding up the expansion of the logistics network of its instant retail business Amazon Now in India to meet rapidly growing market demand and fierce competition. The company is currently expanding its logistics network by adding an average of two “micro distribution centers (MFCs)” every day, and plans to increase the total number of such front-end warehouses to more than 300 by the end of this year. Amit Agarwal, senior vice president of Amazon, said that Amazon Now has received a strong market response in the field of instant retail in India. In particular, in metropolitan areas such as Bengaluru, Delhi, and Mumbai, consumer acceptance of “minute-level delivery” has increased markedly, which is driving Amazon to speed up the construction of a more comprehensive warehousing and distribution network.

It is worth mentioning that Amazon's latest investment commitment to India has increased significantly compared to the previous one. Amazon has previously said it plans to add $15 billion in India by 2030. This includes cloud computing business AWS investing $12.7 billion in infrastructure in India to meet growing customer demand.

Amit Agarwal (Amit Agarwal), Amazon's senior vice president of emerging markets, reiterated Amazon's investment commitment to India and added: “Looking ahead, we are excited to continue to act as a catalyst for India's economic growth, popularizing artificial intelligence technology for millions of Indians, creating 1 million jobs, and increasing the cumulative e-commerce exports we are driving to 80 billion US dollars by 2030, achieving four-fold growth.”