SUMMARY
- Amazon's CEO Andy Jassy announces fresh investments of $6.5 billion in India by 2030.
- The new investment aligns with Amazon's aggressive growth strategy in the face of competition from Walmart's Flipkart and Reliance Retail.
- Alongside Amazon, tech titan Google plans to open a global fintech operation center in India's Gujarat.
In a recent development, Amazon.com confirmed on Friday its intention to raise its investments in India to a total of $26 billion by the year 2030. This was announced after Andy Jassy, the CEO, met with India's Prime Minister, Narendra Modi, in the United States. This increase of $6.5 billion from the original plan will contribute significantly to India's burgeoning digital economy.
Andy Jassy, who didn't share a detailed plan of this investment, revealed these intentions not long after Amazon's cloud computing subsidiary, Amazon Web Services (AWS), announced its own $12.9 billion investment in India by the end of 2030. It seems that the e-commerce behemoth is keen on aggressively growing its Indian operations, where it faces tough competition from Walmart's Flipkart and Indian tycoon Mukesh Ambani's Reliance Retail.
Previously, Amazon had committed $6.5 billion, primarily focused on its e-commerce operations. The additional $6.5 billion announced during Modi's visit signals Amazon's reinforced commitment to the country. This news is a part of a larger trend, as other corporations like U.S. semiconductor toolmaker Applied Materials and memory chip firm Micron Technology have also made commitments during Modi's U.S. visit.
During their discussion, Jassy and Modi covered several topics including bolstering Indian startups, generating employment, facilitating exports, and digitization. These initiatives are expected to empower small businesses and individuals to compete on a global stage, as per an Amazon blog post.
In other news, Google is set to open a global fintech operation center in India's Gujarat, further intensifying the digitization process. Google CEO, Sundar Pichai, revealed the company's ongoing commitment to investing $10 billion in the India Digitisation Fund, supporting operations of its payment service, GPay, among others. As Modi concluded his trip to Washington, he held meetings with top tech executives and encouraged global companies to “Make in India”.
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