‘China out’: Amazon has a ‘$5 billion plan’ for India’s small businesses – Times of India

Amazon is shifting its focus from China to India. The e-commerce giant has said that it plans to increase its exports of small, low-priced items from India to $5 billion this year, up from $3 billion in 2023, a report has said. The shift in focus away from China highlights India’s growing importance in the global supply chain.
“India is naturally one of the largest sources of selection for Amazon,” Bhupen Wakankar, director of global trade at Amazon, told news agency Reuters.

What small, low-priced items will be exported from India and why

As per Wakankar, Amazon has partnered with India’s commerce ministry and trade associations to connect with small manufacturers in India that offer products from textiles and jewellery to household items and Ayurveda products.
These smaller items are easier to ship directly to customers abroad and are less impacted by import taxes compared to more expensive products. Amazon says that it has been investing in technology and tools to support these sellers.
“We are investing significantly in tools and technologies to help sellers optimise their reach, enhance product discovery, and increase sales,” he noted.
Last June, Amazon announced plans to increase its investments in India to $26 billion by 2030, including funds for its cloud business.
The report also said that while Amazon and Walmart‘s Flipkart have revolutionised India’s retail landscape, by attracting customers with lower discounts and onboarding local sellers, they also face criticism from trade groups and politicians over pricing practices.
Last month, commerce minister Piyush Goyal accused Amazon and other e-commerce companies of predatory pricing practices. He added that the sector’s rapid rise should not disrupt millions of brick-and-mortar stores operating in the country.