Amazon raises cumulative export target from India: $80 billion by 2030

Says it's on track to reach $20 bn goal in exports by 2025

After watching the rapidly growing quick commerce space in the recent months, the India business of the Seattle-headquartered Amazon has decided to take a plunge in it. In yet another significant announcement, the company has announced raising its cumulative export target from India to $80 billion by 2030 from $20 billion by 2025, in line with the firm’s commitment to ‘Viksit Bharat’.

 

The firm is on track to reach its previous target of $20 billion in exports by 2025, after reporting $13 billion this year, according to top executives. Amazon’s rival Walmart too is stepping up its India sourcing targets. It has a goal to source $10 billion worth of goods from India annually by 2027.

 

On the sidelines of the e-commerce major’s flagship summit, Smbhav, on Tuesday, Amazon India revealed that its 15-minute delivery service would be launched through a pilot project in Bengaluru this month. Without divulging further details on its upcoming qcom service, Samir Kumar, country head, Amazon India, said: ‘’Watch the space’’.

 

“Our focus (with quick commerce) is on the largest selection and assortment at the fastest speed. We have 30 million products shipped same-day or next-day over a big period, from over 42,000 sellers. There's so much of India that we have not yet covered. We talk about quick commerce in the big cities, but we need to also think about the rest of India,” Kumar told Business Standard in an interaction.

 

Elaborating on the export plans, he said that Amazon plans to achieve its $80-billion target by enabling exports through Amazon's global selling scheme for Indian MSMEs, manufacturers and direct-to-consumer (D2C) startups as well as sourcing made-in-India products to be sold on Amazon's global marketplaces.

 

These include home and kitchen products, apparel and textiles, toys, health and nutrition supplements, ayurveda products etc.

 

The company has been working with the Directorate General of Foreign Trade (DGFT) to leverage the Districts as Export Hubs initiative, aiming to boost MSME exports across India.

 

“As one of the world's fastest-growing economies, India is a key market for Amazon and our focus areas align well with the government’s vision and priorities of digitising small businesses, boosting exports and creating jobs,” said Amit Agarwal, senior vice-president, Emerging Markets at Amazon.

 

As Amazon completes 11 years in India, the company has also earmarked $120 million (Rs Rs 1,000 crore) for startups focused on domestic manufacturing via its Smbhav Venture Fund. The announcement was part of a Memorandum of Understanding (MoU) signed with the Department for Promotion of Industry and Internal Trade (DPIIT).

 

With this, the Amazon Smbhav Venture Fund has been expanded to a cumulative $350 million.

 

In addition, Amazon will now also offer its logistics services to businesses across India. The company has launched ‘Amazon Freight’ for intra-city and inter-city transportation services nationally, and 'Amazon Shipping' for last-mile delivery services, covering over 14,000 pin codes.

 

“We have hit our pledge to digitise 10 million small businesses one year ahead of time and have enabled over 12 million small businesses to become a part of the digital economy. We have enabled nearly $13 billion in cumulative exports and have created nearly 1.4 million direct and indirect jobs in India,” Kumar said.

 

Amazon had earlier pledged to digitise 10 million MSMEs, generate $20 billion in cumulative exports from India and create 2 million jobs in India by 2025.