Amazon CEO Jeff Bezos announced a $1 billion investment to bring small businesses online in India. Speaking at a New Delhi summit, Bezos revealed plans to support over 10 million businesses and enable $10 billion in India-made exports by 2025. He wore traditional Indian attire and flew kites with children, signaling goodwill during a tense visit.
Supporting Small Businesses
Amazon plans to set up digital centers in 100 Indian cities and villages. These centers will help businesses sell online by offering marketing and logistics support. The initiative builds on Amazon’s claim of empowering over 550,000 sellers on its platform to grow their businesses in India.
Facing Criticism and Protests
Indian brick-and-mortar retailers, represented by the Confederation of All India Traders, accuse Amazon and Walmart’s Flipkart of violating laws with deep discounts and favoring big sellers. On Wednesday, small protests with about 50 demonstrators each occurred in New Delhi and Odisha. Retailer Girish Prasad Ratha reported a 15% sales drop over two years due to online competition. Amazon denies these allegations.
Antitrust Probe Launched
The Competition Commission of India (CCI) launched an antitrust probe this week to investigate claims of unfair practices by Amazon and Flipkart. The probe examines allegations of deep discounts and discrimination against small sellers, adding pressure to Amazon’s operations in India.
Bezos’ Engagement with India
At the “first-of-its-kind” summit in New Delhi, attended by over 3,000 small businesses, Bezos praised India’s energy and growth. “This country has something special,” he said, wearing a blue traditional jacket to cheers from the crowd. He also visited a Mahatma Gandhi memorial and sought meetings with Prime Minister Narendra Modi and other officials.
India’s E-Commerce Growth
India’s e-commerce market is set to reach $120 billion in 2020, growing 51% annually from 2017 to 2020, according to a CCI study. Amazon’s new $1 billion investment adds to its $5.5 billion commitment since 2014, reinforcing its focus on India’s booming market.
Retailers’ Response and Future Steps
The Confederation of All India Traders plans protests across 300 cities during Bezos’ visit, which began Tuesday and ends Saturday. Despite small protests so far, the group vows to protect its 70 million members. Bezos emphasized Amazon’s long-term partnership with India, aiming to balance growth with local concerns.
