Amazon to Invest $35B More in India by 2030

Amazon Increases Investment in India

Amazon announced on Wednesday a further investment of $35 billion in India, slated for deployment by 2030.

This additional capital brings the company’s total planned investment in the nation to approximately $75 billion.

The expansion focuses on bolstering both its retail operations and its cloud computing services within the South Asian market.

Supporting Digitization and Job Creation

The new investment will primarily support initiatives aimed at digitizing small businesses across India.

Furthermore, it will be used to enhance and expand Amazon’s logistics network and operational infrastructure within the country.

Amazon intends to provide access to Artificial Intelligence (AI) technologies for up to 15 million small businesses.

The company projects the creation of 1 million jobs – encompassing direct, indirect, induced, and seasonal positions – by the year 2030.

Investment History and Recent Commitments

According to an Economic Impact Report compiled by Keystone Strategy, Amazon has already invested close to $40 billion in India.

Previously, in 2023, the company committed to investing $15 billion in the country by 2030.

Of this earlier commitment, $12.7 billion was specifically allocated to its cloud business, Amazon Web Services.

Following a Trend of Tech Investment

This announcement follows closely on the heels of similar commitments from other tech giants.

Just one day prior, Microsoft declared a $17.5 billion investment in India, planned for completion by 2029.

In October, Google revealed plans to invest $15 billion in establishing an AI hub and building data center infrastructure within the country.

India's Appeal to Big Tech

India represents a strategically important market for major technology companies.

This is driven by its massive population, exceeding one billion internet users and hundreds of millions of smartphone users.

The nation is also attracting significant interest from AI-focused firms, including OpenAI, Anthropic, and Perplexity.

A substantial portion of the population is gaining internet access for the first time, and a rapidly growing developer community is accelerating the adoption of generative AI applications.

Amazon's Perspective

“What’s happening here is something I closely observe,” stated Russell Grandinetti, Senior VP of International Stores at Amazon, during the company’s annual Smbhav event in New Delhi.

He added that developments in India will inevitably influence Amazon’s global business practices.

Competitive Landscape

Amazon faces considerable competition in the Indian market.

Key competitors include Flipkart (backed by Walmart), Meesho, and quick-commerce companies like Swiggy’s Instamart, Zomato’s Blinkit, and Zepto.

These competitors are rapidly expanding and targeting the same urban consumer base.

However, Amazon benefits from its extensive logistics network and a base of over 1.7 million sellers, providing significant scale advantages.