Jeff Bezos announced to invest $1 billion to digitize MSMEs businesses in India: All you need to know
Amazon Chief Jeff Bezos, who is visiting India, announced on Wednesday an incremental investment of USD 1 billion(over Rs 7,000 crore) to digitize small and medium businesses in India. Along with that, the e-commerce major would like to leverage its size and scale to export USD 10 billion worth of ‘Make in India’ goods by 2025.
“Over the next five years, Amazon will invest an incremental USD 1 billion to digitize micro and small businesses… across India, helping them reach more customers than ever before. This initiative will use Amazon’s global footprint to create USD 10 billion in India exports by 2025,” he said.
How will this benefit India?
Digitize 10 million micro, small, and medium enterprises (MSMEs): The USD 1 billion investment would be to digitize 10 million micro, small, and medium enterprises (MSMEs) and traders across India, including manufacturers, resellers, local offline shops, and brands.
Creation of 100 Digital Haats in cities: As part of this effort, Amazon will establish 100 Digital Haats in cities and villages throughout India. The Digital Haats will provide services like e-commerce onboarding, imaging and cataloging, warehouse space, logistics, digital marketing, and compliance. Digital Haats will be in local neighborhoods and available to MSMEs irrespective of their association with Amazon.
Amazon Global Selling program will enable businesses to sell globally: According to a company statement on the event.”Today, there are more than 5,50,000 sellers on the Amazon India marketplace and more than 60,000 Indian manufacturers and brands are exporting them ‘Make in India’ products to customers worldwide on Amazon,”.
“With today’s announcement, Amazon will help Indian MSMEs grow their cumulative exports to USD 10 billion by 2025 through the Amazon Global Selling program, which enables businesses to sell on Amazon marketplaces globally.”
Generating Jobs and transforming the Retail landscape: “The micro, small and medium-size businesses selling on Amazon.in are located across the country including Tier 2 and 3 cities, where they are generating jobs and transforming the retail landscape of the country,” the statement added.
According to a report, India is among the fastest-growing markets for the e-commerce sector. Revenue from the sector is expected to increase to USD 120 billion in 2020 from USD 39 billion in 2017, growing at an annual rate of 51 percent.
Although after his this announcement Competition in the sector is set to intensify as India’s richest man, Mukesh Ambani, has announced plans to launch his own e-commerce venture too.
Bezos, who began a three-day visit to India was speaking at the SMBhav summit – an Amazon India gathering for small and medium businesses. He is expected to meet top government functionaries and business leaders during the trip.