Amazon promises $20 Bn in Indian exports by 2025 - PowerPoint PPT Presentation

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Amazon promises $20 Bn in Indian exports by 2025

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Amazon committed to facilitating exports of Indian goods worth $20 billion in the coming three years. The announcement came in its 2022 Exports Digest. Averaged out, that translates to around $2 billion a year in exports since 2015, when the company first started working with medium, small and micro enterprises (MSMEs) and other firms to have Indian goods shipped to Amazon customers in other countries. – PowerPoint PPT presentation

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Title: Amazon promises $20 Bn in Indian exports by 2025


1
Amazon promises 20 Bn in Indian exports by 2025
Amazon committed to facilitating exports of
Indian goods worth 20 billion in the coming
three years. The announcement came in its
2022 Exports Digest. Averaged out, that
translates to around 2 billion a year in
exports since 2015, when the company first
started working with medium, small and micro
enterprises (MSMEs) and other firms to have
Indian goods shipped to Amazon customers in other
countries. But the company only crossed 2
billion in cumulative exports (and not yearly
exports) in 2020, which means that until that
year it was facilitating an average of 400
million in yearly exports, and will now have to
clock over 5 billion a year to hit this
goal. Exporters on the Amazon Global Selling
program are on track to surpass the 5 billion
milestone in cumulative exports. Importantly, the
program took 3 years to enable the first billion
dollars in exports, while the last 2 billion have
come in just 17 months, Amazons top
executive for India, Amit Agrawal, said in the
Exports Digest.
2
The top-growing product categories for
Indian exporters are apparel, toys, jewelry,
and books. Over a thousand retailers clocked over
Rs 1 crore in sales to the 17 other international
markets where Amazon operates, the company
said. The announcement of the new
cumulative export goal, which was made
alongside an endorsement from a Union
Minister, comes as Amazon faces tensions and
legal setbacks in India that might threaten its
growth in India. The company is locked in a legal
battle with Reliance Industries Limited over
control for the Future Groups retail
assets, which the e-commerce giant argues it
had the right to veto. Two of the platforms main
retailers, Cloudtail and Appario, were raided by
the Competition Commission of India, which is
looking into whether those firms are being
given an unfair advantage on Amazon. With
this announcement, though, Amazon is likely
seeking to gain some level of political and
economic leverage the company has had
fraught relations with brick-and-mortar
traders, a group that has accused it of
predatory pricing and skirting legal norms.
Amazon is flouting all laws and FDI policy of
the Government and trying to creating a
monopolistic market in India since a long time
and there is no transparency on the companys
e- commerce portal thereby causing huge
damage to small retailers of the country,
Praveen Khandelwal, the Secretary General of the
Confederation of All India Traders said in a
statement last Thursday. Spotlighting ties with
MSMEs has long been a tool in Amazons arsenal to
counter this rhetoric, as a way of arguing
that its actually helping the very groups
whose representatives accuse it of
threatening their existence. The company has
in the past advertised its smaller sellers in its
marketing, even though Reuters reporting revealed
that Cloudtail accounted for 40 of sales on the
platform. In doing so, it has also followed a
well worn path by large foreign retailers,
notably Swedish furniture giant Ikea, which
has promised to increase local sourcing as
well as take made in India to markets worldwide
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