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Amazon.com Inc (AMZN.O) has announced its plans to increase its investments in India to $26 billion by 2030, following a meeting between CEO Andy Jassy and Prime Minister Narendra Modi in the United States.
The new planned investments amount to $6.5 billion and come as an addition to Amazon’s previous investment announcement of $6.5 billion for boosting its e-commerce business in India, where it faces competition from Walmart’s Flipkart and Mukesh Ambani’s Reliance Retail.
While a detailed breakdown of the investments was not provided by Jassy, the announcement aligns with Amazon Web Services (AWS) statement last month that it will invest 1.06 trillion rupees ($12.9 billion) in India by the end of 2030, focusing on its cloud computing unit.
This renewed commitment from Amazon is part of the ongoing trend of companies announcing investments during Prime Minister Modi’s state visit, including Applied Materials and Micron Technology.
During their meeting, Modi and Jassy discussed various topics, including support for Indian startups, job creation, digitization, and empowering individuals and small businesses to compete globally. In a blog post, Amazon emphasized its commitment to India’s growth and development.
In related news, Google (GOOGL.O) has announced plans to establish a global fintech operation center in GIFT City, located in the western state of Gujarat, India. The center will focus on operations supporting Google’s payment service GPay and other product operations.
Sundar Pichai, CEO of Google, stated that Google is investing $10 billion in the India digitization fund, further highlighting the company’s commitment to the country’s growth and technological advancement.
As Prime Minister Modi concluded his visit to Washington, he also met with technology executives from U.S. and Indian companies, including Tim Cook from Apple (AAPL.O), Sundar Pichai from Google, and Satya Nadella from Microsoft (MSFT.O). During these meetings, Modi urged global companies to invest and “Make in India,” showcasing the government’s efforts to attract foreign investments and promote the country’s manufacturing capabilities.
Modi’s call to global companies to invest and “Make in India” underscores the government’s focus on boosting domestic manufacturing and attracting foreign investment to drive economic growth. The meetings with technology executives aim to strengthen partnerships and explore opportunities for collaboration in various sectors, including technology, e-commerce, and digital payments.
India’s rapidly growing digital market, coupled with its vast population and rising middle class, presents a lucrative opportunity for global companies. With increased digitization, the government aims to empower individuals and small businesses, facilitating participation in the global market. This aligns with Amazon’s and Google’s investments, as they seek to tap into India’s burgeoning e-commerce and fintech sectors.
The investments by Amazon and Google also signal confidence in India’s economic potential and its role as a key market in the global digital landscape. As these tech giants expand their operations and bolster their presence in India, they are expected to contribute to job creation, skill development, and the overall growth of the digital ecosystem.
Moreover, the commitment to supporting Indian startups reflects the recognition of their innovative potential and their ability to contribute to India’s economic growth. By providing resources, mentorship, and market access, global companies can play a crucial role in nurturing and scaling these startups, further driving India’s entrepreneurial ecosystem.
Prime Minister Modi’s visit to the United States has not only strengthened diplomatic ties but also highlighted India’s position as a significant player in the global technology and business landscape. The engagements with industry leaders underscore the collaborative efforts between India and the United States to foster innovation, enhance trade relations, and harness the potential of emerging technologies.
As global companies continue to invest in India’s digital future, the government’s focus on creating a conducive business environment, streamlining regulations, and promoting ease of doing business will be crucial. By nurturing partnerships and fostering a supportive ecosystem, India aims to position itself as a leading destination for technological advancements, investments, and innovation, ultimately driving its economic growth and development in the digital era.