Amazon Inc is set to increase its exports of small-ticket items from India to about $5 billion this year, a significant increase from nearly $3 billion in 2023. This move is part of a larger trend among multinational corporations to diversify their sourcing away from China. Walmart Inc also plans to boost its supplies from India to $10 billion per year by 2027, up from about $3 billion in 2020. India’s role in the global supply chain is growing, and these investments reflect the country’s increasing importance in the international market.
According to Bhupen Wakankar, director of global trade at Amazon, India is a key source of selection for the company. Amazon has partnered with India’s commerce ministry and trade associations to connect with thousands of small manufacturers across the country. These partnerships enable Amazon to offer a wide range of products, from textiles and jewellery to household items and Ayurveda products. Small-ticket items are easier to export directly to customers abroad and are less affected by import taxes compared to costlier products, making them an attractive option for companies like Amazon.
Amazon and Walmart’s Flipkart have played a significant role in reshaping India’s retail landscape in recent years. These companies have invested billions of dollars in sourcing supplies from small businesses and have attracted consumers through discounts and convenience. However, they have faced criticism from trading and political groups. India’s commerce minister has raised concerns about predatory pricing practices by e-commerce companies like Amazon and has emphasized the importance of supporting brick-and-mortar stores in the country.
Last June, Amazon announced plans to increase its investments in India to $26 billion by 2030, including funds for its cloud business. Through the Global Selling Programme launched in 2015, Amazon has enabled about 150,000 small Indian exporters to sell around $8 billion worth of products directly to overseas consumers by the end of 2023. This program has provided a platform for Indian sellers to reach a global audience and expand their export opportunities, contributing to the growth of India’s export market.
In conclusion, Amazon’s plans to increase its exports from India and Walmart’s commitment to sourcing more supplies from the country demonstrate the growing importance of India in the global supply chain. By partnering with local manufacturers and leveraging technology, these companies are able to offer a wide range of products to customers around the world. While they face challenges and criticism, their investments in India’s export market are expected to drive economic growth and create opportunities for small businesses in the country.India’s commerce ministry has accused e-commerce companies like Amazon of predatory pricing practices and emphasized the need to support brick-and-mortar stores. Despite these challenges, Amazon and Walmart’s investments in India are expected to boost the country’s export market and provide opportunities for small businesses to expand their reach globally.
