E-commerce giant Amazon has revealed its expectations to make cumulative exports of $20Bn from India by year 2025. The sudden surge in momentum the company found during the pandemic has allowed it the luxury to double down on its estimate from January 2020, which was $10Bn.
“In January 2020, we had taken a pledge to enable USD 10 billion in cumulative exports from India by 2025 with our global Selling program. Excited by the momentum in businesses joining the global selling program and by the growing demand for Made in India products across the world, I am super excited to announce that we are doubling down and raising our pledge to enable USD 20 billion in cumulative exports by 2025” said Amit Agarwal, SVP of India and Emerging Markets for Amazon.
Amazon had started its export program in India in 2015, and their road to $1 Billion worth of exports from India was slower than expected, taking them three years. The program has seen exponential growth ever since, with the next $2 Billion coming in just 17 months. The company is currently well on pace to soon hit $5 Billion worth of cumulative exports from India.
Expressing profound optimism in the ever expanding Indian market, Aggarwal added “The government had set an ambitious target of achieving USD 400 billion in annual merchandise exports and for the first time in history, India has breached this target. India’s merchandise exports touched a record USD 418 billion in 2021-22. The Government’s unwavering commitment towards exports has been very encouraging.”
Amazon’s all encompassing investment in the Indian market stands at $6.5 billion, a lot higher than what the company had initially promised. Amazon, as a platform, have made a significant impact on the Indian retail market, allowing small business and vendors to tap into a global marketspace spanning 18 countries
Amazon has not exactly had a smooth sailing road to establish a stronghold in India, more recently, they have been engaged in a long standing legal battle with Reliance Retail, which, on paper, does seem to have ended in their favour, but with Reliance buying out a sizeable chunk Future Retail’s Assets, the legal victory appears to be a moot point.