Washington: E-commerce giant Amazon said it will invest an additional USD 3 billion in its India operations taking its investment in the country to over USD 5 billion.
The American e-commerce giant’s founder and CEO Jeff Bezos said made the announcement today at an event here attended by Prime Minister Narendra Modi. “Amazon will invest USD 3 billion more in India.
E-commerce giant's move will further pile up pressure on local rivals Flipkart and Snapdeal to keep raising fresh funds.
This is in addition to the USD 2 billion announced in 2014,” Bezos said at the annual gala of US India Business Council (USIBC). “We have already created some 45,000 jobs in India and continue to see huge potential in the Indian economy,” Bezos said. “Our Amazon.In team is surpassing even our most ambitious planned milestones…,” Bezos said after receiving USIBC’s Global Leadership Awards.
Amazon, which gets most of its international revenue from the U.K., Japan and Germany, doesn’t break out sales from India. Revenue from a group of other international markets, including India, reached $7.4 billion in 2015, or 6.9 percent of total sales.
Amazon, which debuted in India in 2013, has been spending to challenge local e-commerce companies Flipkart and Snapdeal
Star India to invest $5 billon
Star India, a subsidiary of 21st Century Fox, also said it will invest an additional USD 5 billion over the next three years. “We see huge potential in the Indian market and have been one of the largest foreign investors in India and the largest in the media and entertainment sector,” said Uday Shankar, Chairman and CEO of Star India. USIBC chairman John Chambers announced that in less than two years, about 20 per cent of USIBC member companies have already invested USD 28 billion India. (ALSO READ: Big push for Amazon India, MD Amit Agarwal inducted in CEO Jeff Bezos’ core team)
“Over the next 2-3 years, we see this pace accelerating, again with about 20 per cent of our member companies reporting, indicating that USIBC members are on track to invest an additional USD 45 billion, which is a conservative estimate,” he said. “Given Prime Minister Modi’s track record towards implementing ‘Digital India’ and key economic reforms, we are optimistic that this number will be dramatically exceeded, perhaps even doubled,” Chambers added. “Today we are witnessing a new phase in India’s growth story driven by the vision of Prime Minister Modi,” he said.
“I’ve had the opportunity to meet many government leaders around the world and I believe that Prime Minister Modis total approach in India encompassing Digital India, skills, innovation and entrepreneurship will ensure India remains the fastest growing economy over the next 5 years and provide inclusive growth, create new jobs and? increase the standard of? living for its citizens.
Prime Minister Modi has rapidly become the model for not just the developing countries, but the entire world,” Chambers said. Dilip Shanghvi, Founder and Managing Director of Sun Pharmaceuticals, along with Bezos was also presented with the USIBC’s Global Leadership Award. Both were honoured for their contributions and commitment to integrating India into the global economy.
“At Sun Pharma we are focused on offering quality medicines to all our customers and patients worldwide. Under the dynamic leadership of Prime Minister Modi, we see an environment of technology-led innovation in India. It will enable us to bring innovative products meeting unmet medical needs of patients globally,” said Dilip Shanghvi, who also received the Padma Shri honor this year.
Welcoming the Prime Minister, USIBC president Mukesh Aghi said USD 45 billion is a good starting point for American companies to invest in India and this number will only go up in the future. “This will translate into increased technology transfers and job creation. We are excited to expand the potential opportunities attached to this relationship,” he said.
