Amazon.com Inc (AMZN.O) announced on Friday its plans to ramp up investments in India to a staggering $26 billion by 2030. This decision came shortly after CEO Andy Jassy held a meeting with Prime Minister Narendra Modi during his visit to the United States. The new planned investments will amount to $6.5 billion, further solidifying Amazon’s commitment to the Indian market.
Although Jassy did not provide a breakdown of the investment plan, it closely follows Amazon Web Services’ (AWS) recent announcement. Last month, AWS revealed its intention to invest $12.9 billion (1.06 trillion rupees) in India by the end of 2030, primarily focused on bolstering the country’s cloud computing infrastructure.
Previously, Amazon had declared a $6.5 billion investment strategy, primarily aimed at strengthening its e-commerce business. This segment of the company faces stiff competition from local players such as Walmart’s Flipkart and Mukesh Ambani’s Reliance Retail. With the latest announcement, the total additional investment committed by Amazon amounts to approximately $6.5 billion.
Amazon’s investment commitment aligns with the state visit of Prime Minister Modi, during which several other companies also made significant pledges. Notably, U.S. semiconductor toolmaker Applied Materials and memory chip firm Micron Technology announced their commitments during Modi’s visit, highlighting the growing interest of global enterprises in India’s market potential.
During his meeting with Jassy, Prime Minister Modi emphasized the importance of supporting Indian startups, job creation, facilitating exports, digitization efforts, and empowering individuals and small businesses to compete on a global scale. Amazon’s official blog post noted the discussions centered around these key areas, underscoring the company’s commitment to contributing to India’s economic growth.
In a separate development, Google (GOOGL.O) revealed its plan to establish a global fintech operation center in GIFT City, located in the western state of Gujarat, India. The center will focus on supporting the operations of Google’s payment service GPay and other product-related activities. Google CEO Sundar Pichai confirmed the company’s ongoing investments in India, with a mention of the $10 billion India digitization fund.
As Prime Minister Modi concluded his trip to Washington, he held meetings with technology executives from various U.S. and Indian companies. Apple’s Tim Cook, Google’s Sundar Pichai, and Microsoft’s Satya Nadella were among the notable attendees. During these discussions, Modi encouraged global companies to “Make in India,” emphasizing the country’s commitment to attracting foreign investment and fostering innovation.
With Amazon’s substantial investment commitment and other multinational companies expressing their confidence in India’s market potential, the country is poised to witness significant growth in the technology and e-commerce sectors. The collaborations between global giants and Indian enterprises are expected to drive job creation, spur economic development, and accelerate the nation’s digital transformation efforts.
