Amazon will invest more than Rs 2,000 crore (about $233 million) in India in 2025 as it strengthens its logistics and safety standards, said the ecommerce company on Thursday.
The investment will be used for expanding and modernising the company’s infrastructure, employee safety and wellness initiatives, and developing technologies for its fulfillment network.
The planned outlay highlights Amazon’s ambition to operate what it calls India’s “safest, fastest, and most reliable” logistics network.
The company said the new capital commitment builds on a series of prior investments that have enabled it to service every deliverable postal code in the country.
“For over a decade now in India, we have been focused on building the best-in-class logistics infrastructure — designed to deliver with safety, speed, scale, and reliability for our customers across the country,” said Abhinav Singh, vice-president - operations, Amazon India and Australia.
These latest investments reflect our commitment to continually expand and upgrade our operations across our fulfilment, sortation and delivery network.
India remains a critical growth market for Amazon, which continues to face intense competition from rivals like Walmart-owned Flipkart, Reliance’s JioMart and the Tata Group.
Amazon plans to use the investment in India to launch new sites and upgrade existing facilities across its fulfilment, sortation, and delivery network.
The move is aimed at boosting processing capacity, speeding up order fulfilment, and improving overall operational efficiency.
The facilities will feature energy-efficient systems and new technology.
Amazon says its fulfilment centres are designed for accessibility, with ongoing improvements in cooling, safety measures, and rest areas to support employee well-being and create an inclusive work environment.
The investment highlights Amazon’s strategy to deepen its logistics footprint in India, enhance customer experience, empower sellers, and support local economic growth.
Amazon has invested more than $11 billion in India, including data centres, fulfillment facilities, a nationwide logistics network, digital payment infrastructure, and technology aimed at digitizing small sellers and boosting exports.
The company has also directed capital toward enhancing customer experience, supporting local content creators, and expanding its entertainment offerings.
In June 2023, Amazon CEO Andy Jassy reaffirmed the company’s long-term commitment to the country during a meeting with Prime Minister Narendra Modi.
At that time, Amazon announced plans to invest an additional $15 billion in India by 2030.
This would bring its total investment in the market to $26 billion, underscoring the strategic importance of India as a key growth driver for the company.
Amazon Web Services (AWS) plans to contribute $23.3 billion towards India’s gross domestic product (GDP) by 2030 while supporting over 1.31 lakh jobs annually, a senior executive from the company said on Thursday.
This announcement comes as the cloud infrastructure provider prepares to invest $12.7 billion by the end of 2030 to meet the growing demand for cloud services and artificial intelligence (AI) in the country.
“We're all aware that India is on the cusp of becoming a $1 trillion digital economy.
"As AWS, we continue to deepen our commitment towards India,” said Sandeep Dutta, president of India and South Asia, AWS.
He was speaking at the AWS Summit in Mumbai.
In January, the company announced plans to invest $8.3 billion in cloud infrastructure in the AWS Asia-Pacific (Mumbai) Region in Maharashtra.
This is part of its broader $12.7 billion investment plans for India.
“We are continuously working with the government and the industry to find opportunities to mitigate India's skill gap. Since 2017, AWS in India has trained more than 5.9 million people on cloud and related skills,” Dutta added.
He also revealed that the company plans to install more than 200 billion smart meters in India by 2030.
“Over the course of the next few years, we will install in excess of 200 billion smart metres in India.
"Why? The objective is very clear.
"We intend to bring down, as a country, our technical and commercial loss levels from the current trajectory of 13.8 or 14 per cent to 7 per cent in the next five to six years,” he explained.
Dutta noted that every 100 basis points of loss reduction could potentially add Rs4,500 crore to the country.
Smart meters are capable of digitally tracking real-time usage of electricity, gas or water, and transmitting the data directly to utility providers.
AI push
An AWS study found that 83 per cent of Indian organisations had appointed an executive with sole responsibility for overseeing developments related to AI.
This highlights the growing importance of Chief AI Officers (CAIOs) in accelerating adoption and managing implementation complexity.
The report added that another 15 per cent of organisations polled were planning to appoint such executives by 2026.
With generative AI (GenAI) emerging as the top budgetary priority—followed by security and compute—companies are increasingly formalising AI leadership roles.
The study also found that 43 per cent of organisations had fully integrated GenAI into their workflows.
“GenAI adoption in India is near universal, with 98 per cent of organisations using GenAI tools, and 95 per cent actively experimenting to unlock new applications,” the study noted.
The findings are based on responses from 415 senior IT decision-makers in India across sectors including financial services, information and communications technology.
Ajinkya Kawale/Business Standard
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