Amazon plans $5 billion of small-ticket exports from India

Amazon’s Export Ambitions

Amazon Inc. is poised to significantly expand its exports from India, aiming to reach $5 billion in small-ticket items this year, a substantial increase from the $3 billion exported in 2023. This shift marks a departure from China as a primary sourcing hub, reflecting a broader trend of multinational corporations diversifying their supply chains.

India’s Growing Significance in Global Supply Chain

India’s role in the global supply chain is on the rise, with e-commerce behemoths Amazon and Walmart recognizing its potential. Amazon’s Director of Global Trade, Bhupen Wakankar, emphasizes India’s status as a major source of selection for the company.

Collaborations and Product Offerings

Amazon has forged strategic partnerships with India’s Commerce Ministry and trade associations to connect with countless small-scale manufacturers nationwide. This collaboration enables Amazon to offer a diverse range of products, including textiles, jewelry, household items, and Ayurvedic products.

Strategic Investments and Technology

Amazon is making substantial investments in tools and technologies to enhance its sellers’ reach, product visibility, and sales. The company is committed to supporting Indian exporters and aims to facilitate $20 billion in cumulative e-commerce exports from India by 2025.

Criticism and Regulatory Scrutiny

Despite the growth and investment, Amazon and Walmart’s Flipkart have faced criticism from traders and politicians. India’s Commerce Minister has raised concerns about predatory pricing practices and the impact on brick-and-mortar businesses. However, Amazon remains a powerful force in India’s retail landscape, reshaping the industry through its investments and attractive offerings.

Amazon’s Long-Term Commitment to India

In June 2023, Amazon unveiled plans to increase its investments in India to $26 billion by 2030. This commitment includes funding for its cloud business and underscores the company’s long-term confidence in the Indian market.

Global Selling Programme’s Success

Since its inception in 2015, Amazon’s Global Selling Programme has empowered approximately 150,000 Indian exporters to reach international consumers directly. By the end of 2023, these sellers had exported approximately $8 billion worth of products. Amazon continues to expand the program, aiming to facilitate even greater e-commerce exports from India in the years to come.