Amazon Announces New Investment in India
Jeff Bezos visited India to present his $1 billion investment plan for the country. (Flickr)
Amazon founder and CEO Jeff Bezos traveled to India on January 16, where he vowed to invest more than $1 billion in the country despite protests against his company’s practices which some describe as anti-small businesses.
During his three-day visit to the country, Bezos outlined his investment plans for the next five years, which included introducing millions of small businesses to the online sales platform, the Guardian reported.
“This initiative will use Amazon’s global footprint to create $10 billion in Indian exports by 2025,” Bezos said while speaking at a small business summit in Delhi organized by Amazon. He pledged that the initiative would “help Indian businesses grow by selling online worldwide.”
According to TechCrunch, Bezos also announced a direct partnership with thousands of neighborhood stores across India, using them to “store and deliver goods.” “It’s good for customers, and it helps the shop owners earn additional income,” he tweeted.
However, many of the small businesses Amazon claims to help have been organizing protests in more than 300 cities across India against the company’s expansion. Protesters have wielded signs that read, “Jeff Bezos go back!”
Sumit Agarwal, a member of the Confederation of All India Traders (CAIT), the group that organized the protests, characterized Bezos as an “economic terrorist.” He also criticized Amazon’s participation in “predatory and competitive business which destroys small retailers.”
Currently, Amazon has more than 60,000 employees in India, and the company has committed to investing $5.5 billion in the country.
In addition, the Guardian reported that Amazon has built a new “campus” for more than 15,000 employees in Hyderabad, India’s tech hub. The project is both Amazon’s largest building worldwide and its only non-U.S. campus.
The company has long set its sights on India due to its large population that offers a huge market potential.
However, small businesses, which account for almost 90 percent of India’s retail sales, have accused the company of putting them out of business by “undercutting their prices and favoring large retailers.”
Bezos has also faced rebuke from the Indian government, as his itinerary included no meetings with any ministers or high-ranking officials, according to Quartz.
Prime Minister Narendra Modi reportedly refused to meet with Bezos, according to New Delhi Television (NDTV). The move may be a ploy by the current ruling party in India, the Bharatiya Janata Party (BJP), to attempt to maintain favor with local shopkeepers and small businesses, many of whom form the core of the BJP’s voting base.