Amazon Pins Hope on India’s E-commerce Boom, Announces ₹ 2,000 Cr Investment to Boost Operations

Amazon on Thursday announced investment ₹ 2,000 crore to scale up its operations in India in 2025. The e-commerce major said the investment aims to support network expansion and upgrades to serve customers faster and more reliably, advance technology and innovation. Amazon’s big expansion bet comes at the time when India’s e-commerce market is booming. 

“These latest investments reflect our commitment to continually expand and upgrade our operations across our fulfillment, sortation and delivery network,” Vice President-Operations, Amazon India and Australia, Abhinav Singh said. 

The e-commerce giant is eyeing to expand delivery to all serviceable pin-codes across India. Additionally, it also plans to leverage these investments to launch new sites and upgrade existing facilities across its fulfillment, sortation and delivery network.

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Amazon also plans to utilise the fund to enhance processing capacity, improve fulfillment speed, and increase efficiency across the company’s operations network. 

The company, in a statement, said the investment highlighted its focus on strengthening its operational footprint in India, sellers, and enhancing customer convenience while driving growth for local economies. 

Additionally, to ensure the safety of delivery partners, the giant said it will continue to enhance on-road safety by using the latest and advanced technologies, including tools that measure route complexity and ensure equitable distribution routes. 

What’s Behind Amazon’s Bold Bet 

India’s e-commerce market is projected to grow at a 21% CAGR and reach $ 325 billion in 2030, according to a report by Deloitte. The growth of the market is fueled by broadband internet penetration, affordable smartphones, digital payments, and increasing spending from affluent and middle-class households coupled with mobile-first, digitally charged younger population. With 881 million users, India has the second-largest internet user base in the world, and by 2030, it is expected to rise to the third position in the online retail industry, according to Invest India.