According to Jeff Bezos, Amazon’s CEO, the 21st Century is “going to be the Indian century”. Perhaps knowing that the country is an amazing market inspired him to announce a major investment in India. However, the news does not seem so great for Indian small traders. According to them, Amazon’s initiative might drive them out of business. They are aware of how the company offers sharply discounted products and favors big sellers. Accordingly, we understand that when Jeff Bezos announces investment in India, this is controversial.
Let us take a look at the plans of the CEO in India. Speaking at a company event in New Delhi, Bezos said that the online retail giant expects to export $10bn worth of India-made goods by 2025. Amazon, for instance, has already committed to invest $5.5bn in the country.
India’s e-commerce situation
Amazon is not the only ruler in India’s e-commerce market. Nowadays, it is currently dominated by Flipkart as well, which is an Indian company now owned by Walmart. However, there is another company trying to share the profits of the so-called promising market. By now it is a wide-known fact that a conglomerate run by Asia’s richest man has started a service that aims to compete with Amazon and Wallmart.
When we become aware of that, we understand that a headline such as “Jeff Bezos announces investment in India” is not unreasonable. This is a warning that Amazon is not stepping down regarding the Indian market.
This dispute also makes us reason about the North-American domain over Asian countries. It isn’t strange that American companies are taking over more than half of the Indian e-commerce market? If this initiative is taking away clients and jobs from Indian companies, it may end up jeopardizing the local economy. Despite the low costs of products, which is apparently a good thing, how will people buy stuff if they are losing their jobs?
Taking all that into consideration, the fact that Jeff Bezos announces investment in India is to be taken with a big caveat. We must study how the Indian economy is developing. Besides, we must discover how all this investment will contribute to local workers, companies, and families. If you like to know the most recent news on the economy, do not forget to check our remaining articles!