By James Mathew
Competition Commission of India has recently initiated a probe into Amazon and Flipkart's selling practices, following complaints of unfair trade practices and deep discounts
US-based global e-commerce giant Amazon will invest $1 billion in India to help digitise Indian small and medium enterprises, the company CEO Jeff Bezos has said.
Bezos, who is currently on a 3-day visit to India, has also said his company will use its global footprint to export $10 billion worth of ‘made in India’ goods by 2025.
“21st century will be Indian century and the biggest alliance between India and US,” Bezos said, speaking at ‘Sambhav, an event organised by Amazon India in Delhi, on Wednesday.
The Amazon chief’s announcement for the Indian SME (small and medium enterprises) sector is significant as his visit to India is marked with protests from sellers on its platform – mainly SME units - which have complained about Amazon’s anti-competitive pricing practices.
Competition Commission of India, India’s competition watchdog, has recently initiated a probe into selling practices of Amazon and Wallmart-owned Flipkart, following complaints about unfair trade practices, including use of deep discounts and giving preference to select sellers to capture market share.
Jeff Bezos sought to assure the protesting sellers by saying that Amazon will help take their goods to global customers.
“The company will help export $10 billion worth of goods made by Indian SMEs by 2025,” he said at the event in Delhi.
The proposed $1 billion investment will help India’s small and medium businesses step up their digital presence and broaden market opportunities, Bezos added.
Amazon has recently infused about $242 million (Rs 17.15 billion) in fresh capital in two of its India entities — Amazon Pay India and Amazon Wholesale (India).
While $191 million was infused into Amazon Pay, the remaining amount was infused into Amazon Wholesale, according to company filings with India’s Registrar of Companies, sourced from business intelligence platform, Paper.vc.For all the latest retail news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.