Amazon Targets $5 Billion in Exports for Indian Small Businesses in 2024, Aiming to Transform Global E-commerce

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Amazon Inc. is set to help Indian exporters sell approximately $5 billion worth of small-ticket items in international markets such as the United States and the United Kingdom through its platform this year. This represents a significant increase from the nearly $3 billion in exports achieved in 2023. The move highlights Amazon’s growing role in fostering cross-border trade and expanding opportunities for Indian sellers, as part of its broader Amazon Global Selling program, launched in 2015.

As part of the initiative, nearly 150,000 small and medium-sized exporters from across India are expected to sell their products directly to consumers overseas via Amazon’s e-commerce platform. These sellers offer a wide range of items, including textiles, jewelry, household goods, and Ayurveda products, all of which have proven to be popular with international buyers due to their affordability and ease of shipping.

Bhupen Wakankar, Amazon’s Director of Global Trade, shared the company’s optimistic outlook during an interview with Reuters. He stated that Amazon is making significant investments in tools and technology designed to help sellers expand their reach, improve product visibility, and ultimately boost sales. This strategic investment underscores Amazon’s commitment to supporting small businesses in India as they navigate the complexities of the global marketplace.

According to a company statement, Amazon is on track to help tens of thousands of Indian businesses exceed a cumulative $13 billion in e-commerce exports by the end of 2024. This ambitious target aligns with Amazon’s goal of facilitating $20 billion in total e-commerce exports from India by 2025.

Amazon’s increasing focus on Indian exports reflects a larger trend among global companies to diversify their supply chains and reduce dependence on China. India’s growing role as a hub for manufacturing and exporting has attracted interest from multinational corporations, which see the country as a key player in the global economy. For example, Walmart Inc. announced in 2020 that it planned to increase its sourcing from India to $10 billion annually by 2027, up from $3 billion at that time.

Amazon has also established partnerships with India’s Ministry of Commerce and various trade associations to better connect with small manufacturers. Through these collaborations, the company is helping local businesses expand their reach and capitalize on the growing demand for Indian-made products abroad. In addition to textiles and jewelry, Indian exporters are increasingly shipping household items and Ayurvedic products, all of which benefit from lower shipping costs and reduced import taxes compared to higher-value goods.

The rise of e-commerce platforms like Amazon and Walmart’s Flipkart has revolutionized India’s retail industry in recent years. These companies have invested billions of dollars in sourcing from small businesses while simultaneously attracting consumers with competitive pricing and large discounts. However, their rapid growth has not been without controversy. Critics, including Indian trade groups and political organizations, have raised concerns about the impact of e-commerce on traditional brick-and-mortar stores.

India’s Commerce Minister has previously accused companies like Amazon of engaging in predatory pricing practices that threaten millions of small, local retailers. Despite these criticisms, Amazon continues to expand its footprint in the country. In June of last year, the company announced plans to increase its total investments in India to $26 billion by 2030, which includes funding for its cloud business.

Amazon’s efforts to boost exports from India are part of its long-term strategy to promote global trade and support the growth of small businesses worldwide. As the company continues to invest in new technologies and resources, Indian sellers stand to benefit from increased access to international markets, helping them compete on a global scale and contribute to India’s expanding role in the global supply chain.