Amazon Targets $5B in Indian Small Goods Exports by 2024

On September 5th, according to foreign media reports, Amazon plans to export approximately $5 billion worth of small goods from India this year, up from nearly $3 billion in 2023.

According to Bhupen Wakankar, Director of Global Trade at Amazon, the company expects to assist Indian exporters in selling about $5 billion worth of small goods in markets like the U.S. and the U.K. through its platform this year, with a goal of achieving a total of $20 billion in Indian e-commerce exports by 2025. This move highlights India’s growing significance in the global supply chain and reflects the broader trend of multinational companies shifting their sourcing centers.

Wakankar noted that Amazon has partnered with India’s Ministry of Commerce and trade associations to connect with thousands of small manufacturers nationwide, offering a variety of products ranging from textiles and jewelry to home goods and Ayurvedic products. Unlike more expensive items, these small goods are less impacted by import taxes. Amazon is also heavily investing in tools and technologies to help sellers optimize their reach, enhance product visibility, and increase sales.

In recent years, Amazon and Walmart-owned Flipkart have reshaped the Indian retail landscape, investing billions of dollars in sourcing from small and medium-sized enterprises and attracting consumers with significant discounts. Last June, Amazon announced plans to increase its investment in India to $26 billion by 2030, which includes funding for its cloud business. Walmart also stated in 2020 that it plans to increase its annual sourcing of Indian products from $3 billion at the time to $10 billion by 2027.

Despite rapid growth, these platforms have faced criticism from trade and political groups. India’s Commerce Minister has accused e-commerce platforms like Amazon of engaging in predatory pricing and emphasized that the rapid rise of the e-commerce industry should not disrupt the millions of brick-and-mortar stores operating in the country.