Amazon India took over four years to get $2 billion in exports from India - it now wants to get 5 times the number in the next 5 years
- Amazon India, through its global selling programme, has enabled $2 billion worth of exports from India.
- During his visit to India in January 2020, Amazon top boss Jeff Bezos had made a commitment to enable $10 billion in e-commerce exports by 2025.
- Indian products across categories like health and hygiene, nutritional supplements and home essentials saw their demand grow in markets like the US, Canada, Europe, Mexico, Japan, Australia among others.
“It took the program three years to hit cumulative exports of $1 billion and it has grown 100% to hit the next $1 billion in less than 18 months, to cross the $2 billion milestone in cumulative exports from India. The program is rapidly boosting exports from India and helping build global Indian brands,” said
Agarwal said that they aim to continue to make exports easy for Indian entrepreneurs and businesses of all sizes to enable $10 billion in e-commerce exports by 2025. Amazon Global Selling Program was launched in 2015 and has over 60,000 sellers on its platform.
The Indian B2B e-commerce market is expected to grow to $200 billion in the next six years, according to India Brand Equity Foundation. However, while there is potential for growth, the competition is also rising at a fast pace. Chinese entrepreneur and billionaire Jack Ma who hit a jackpot with Alibaba.com, made a rather silent entry into India in 2008. Ever since, it has brought as many as 15,000 SMEs onto its platform. Globally, Alibaba has 10 million active buyers spread across 190 countries.
But there are several Indian competitors too. The publicly listed IndiaMart has over 82.7 mn registered buyers and 5.55 million supplier storefronts across 54 industries in India as of FY19. Others in the sector are TradeIndia.com and ExportersIndia.com.
This is what Amazon is betting on
According to Amazon, Indian products across categories like health and hygiene, nutritional supplements and home essentials saw their demand grow in markets like the United States of America, Canada, Europe, Mexico, Japan, Australia among others.
During the Amazon Smbhav event on January 15 in Delhi, Bezos, sporting a ‘made in India’ Nehru jacket, had also announced a billion dollar investment in India to digitize small and medium businesses.
Meanwhile, Nitin Gadkari, union minister of road transport and highways and micro, small and medium enterprises has put forth a list of requests in front of Amazon while it looks to grow the exports business. Speaking during Amazon’s conference call regarding its exports business, Gadkari said Amazon should classify micro, small and medium enterprises according to the government’s recent definition to help them understand the sectors that are doing well.
The minister also asked the e-commerce giant to put more focus on handicrafts from India and push them at a global level. Gadkari also joked about Amazon’s imports into India, and asked the company on how imports can be reduced to boost Indian products on the platform.
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