Amazon Inc is setting its sights on exporting approximately $5 billion worth of small-ticket items from India this year, marking a significant increase from nearly $3 billion in 2023. These exports, targeting key markets like the United States and Britain, reflect a strategic shift away from reliance on China, according to a company official.
This move by one of the world’s largest e-commerce companies underscores India’s rising importance in the global supply chain and mirrors a broader trend among multinational corporations seeking to diversify their sourcing beyond China.
In a parallel development, Walmart Inc has announced plans to boost its annual supply from India to $10 billion by 2027, a significant rise from about $3 billion in 2020. “India is naturally one of the largest sources of selection for Amazon,” Bhupen Wakankar, Director of Global Trade at Amazon, stated in an interview with Reuters.
Amazon has forged partnerships with India’s commerce ministry and various trade associations to engage thousands of small manufacturers across the country. The products range from textiles and jewelry to household items and Ayurvedic goods. These items, often easy to ship directly to international customers, are typically less affected by import taxes compared to more expensive products.
“We are making substantial investments in tools and technologies to help sellers optimize their reach, enhance product discovery, and boost sales,” Wakankar mentioned ahead of an exporters’ meeting in New Delhi.
In recent years, Amazon and Walmart’s Flipkart have dramatically transformed India’s retail landscape by investing billions of dollars in sourcing supplies from small businesses and enticing consumers with significant discounts. However, this rapid growth has not been without controversy. Amazon and other e-commerce giants have faced criticism from local trading and political groups.
India’s commerce minister has accused Amazon and its peers of engaging in predatory pricing practices, warning that the swift expansion of e-commerce should not come at the expense of millions of brick-and-mortar stores across the country.
In June, Amazon announced plans to increase its total investments in India to $26 billion by 2030, which includes funding for its cloud business. Through the Global Selling Programme, launched in 2015, Amazon has enabled about 150,000 small Indian exporters to sell nearly $8 billion worth of products directly to international consumers by the end of 2023.
Looking ahead, the company aims to facilitate $20 billion in cumulative e-commerce exports from India by 2025, further solidifying the country’s role as a key player in Amazon’s global strategy.
