India’s retail market has witnessed a booming new year with the arrival of the world’s most prominent retail firm’s CEO. Jeff Bezos the CEO of Amazon was on a three-day tour in India from 15th January 2020.
The visit was launched with a homage to Nation’s father, Mahatma Gandhi, in New Delhi. The tour stands remarkable due to a couple of announcements made, which are going to add a lot to the e-commerce and retail scenario of the country.
The announcements made were on India’s future $ 1 billion investment, one million job creation, $ 10 billion worth of Indian goods export, and Amazon’s SME program SAMBHAV.
In conversation with Amazon India head Amit Agarwal at the amazon SAMBHAV event, the billionaire had made two predictions for India.
“I want to make a prediction for you – I predict the 21st century will be the Indian century, this country has dynamism and energy, and everywhere I go here we see there is an improvement in growth. This country has something special”.
His second prediction was that the economic partnership between India and the US would be the “most important alliance” in the 21st century.
Amazon, the e-commerce giant, has invested more than $ 5 billion in India since 2013, said its latest plan to create 100 digital ‘haats’ for digitizing small and medium business enterprises under the Amazon SAMBHAV program. This he claims will help Amazon to create a phygital ecosystem for its Indian business to compete against the entry of Mukesh Ambani owned Jio Mart, and Walmart owned Flipkart.
The retail giant plans to create one million jobs directly and indirectly across industries, including information technology, content creation, skill development, retail, logistics, and manufacturing. This will be an addition to the 7, 00,000 jobs amazon created over the past six year’s span of time.
The additional $1 billion investment in India will help Amazon to scale up its operations with the partnership of neighbourhood Kirana stores to take amazon India export to $ 10 billion by the end of 2025.s
Though According to Piyush Goyal, Union Commerce Minister, India Amazon is not doing a favor by investing $ 1 billion. The speech came from India’s commerce minister after hearing the investment announcement by the retail giant.
The words come when thousands of Indian retailers are marching towards anti-Amazon and Flipkart protests across India. Retailers have recognized amazon and Flipkart as second Britishers, who are ruling the Indian retail market by utilizing their ability in capacity utilization, technologies implementation, lower capital cost across industries, etc.
India is considered as a ‘Golden Chidia” by the e-commerce majors due to its ability to create a $ 200 bn online retail market by 2025, which puts India in the list of essential markets for retail giants, to boost their revenue with 20 % CAGR.
Compiled by: Nadir Sayed