Amazon plans $1bn investment in India despite trader backlash
0Reported today on The Guardian Technology
For the full article visit: https://www.theguardian.com/technology/2020/jan/16/amazon-plans-1bn-investment-in-india-despite-trader-backlash
Amazon plans $1bn investment in India despite trader backlash
Jeff Bezos pledges funds to help digitise small businesses as anti-Amazon protests spread
Amazon's founder, Jeff Bezos, has pledged to invest $1bn (£776m) in small businesses in India, despite a growing backlash against the online retailer by the country's powerful local traders.
During a three-day visit to India, where Amazon has its sights set on dominating the burgeoning e-commerce market, Bezos laid out his ambitious plans for Amazon's investment in India over the next five years, including helping to digitise millions of small businesses.
"This initiative will use Amazon's global footprint to create $10bn in Indian exports by 2025," said Bezos, who was speaking at a summit for small businesses in Delhi, organised by Amazon as part of the company's attempt to woo the country's powerful retail lobby.
He pledged that the funding would impact up to 10m small and medium businesses in India, including manufacturers, resellers, small local shops and brands of all sizes, and "help Indian businesses grow by selling online worldwide".
However, the pledge by Bezos came against the backdrop of mass protests against Amazon, organised by the country's powerful retail lobby in 300 cities across India, and after news that the company was being investigated by India's fair-trading watchdog for violating India's strict laws around foreign business practices.
While the online commerce market in India is already worth about $39bn, and growing by the day, the country is still largely reliant on its 12m independent neighbourhood shops, which account for almost 90% of the country's retail sales. However, there are growing fears that further opening up the market to Amazon and its c