iNDICA NEWS BUREAU-
The Indian market is one of the key markets for Amazon. From the time the US eCommerce giant established itself in India it has expanded rapidly, and on the way enabling growth for many businesses.
In fact, Indian micro, small and medium enterprises (MSMEs) and brands that are part of Amazon’s Global Selling Program (GSP) have crossed $2 billion in cumulative exports.
Achieving this feat in less than 10 years is a wonderful sign of things to come with both complementing each other’s growth.
GSP was launched in India in 2015. The program, also operational in other markets, has helped more than 60,000 Indian sellers export products to 15 Amazon websites, the company said.
During a visit to India in January, Amazon boss Jeff Bezos said the U.S. e-commerce company would invest $1 billion in digitizing small- and medium businesses in India and expected to export Indian-made goods worth $10 billion by 2025.
Current sales are still a fraction of India’s total exports of goods and services, which are estimated at nearly $530 billion in the financial year that ended on March 31.
“It took us three years plus to hit the first billion dollars, today we are able to hit the next billion dollars, 100% growth in the last 18 months,” Gopal Pillai, vice president for seller services at Amazon India, said in a phone interview.
Amazon has previously said it has also tied up with Indian banks to provide cheap loans to its small sellers.
Amit Agarwal, senior VP and country head Amazon India, said micro, small and medium enterprises (MSMEs) are the backbone of the Indian economy and by digitizing them, the company is contributing towards boosting exports and job creation that will empower inclusive economic growth of the country.
Agarwal said the program has helped MSMEs sustain their exports business and in turn, supported hundreds of families amid the Covid-19 pandemic that has led to lockdowns and disruptions in supply chains globally.
“Exports will continue to play a critical role in this revival. GSP is helping local go global. This is more important than ever for our small businesses, and for the nation, as it recovers from unprecedented time. We will continue to empower Indian MSMEs to realize their potential and make exports easy,” he said.
The biggest market for Amazon’s Indian exporters is the United States, and annual events there, such as Black Friday, Cyber Monday and the e-tailer’s own Prime Day have helped boost sales, said Abhijit Kamra, head of global trade at Amazon India.
Apparel and jewelry, home items, and leather products led the sales, although exports saw growth across several product categories, Kamra said.
Nitin Gadkari, union road transport and MSME minister said the MSME sector contributes about 30 percent of the growth of the country and about 48 percent of India’s exports.
He added that Amazon – with its global expertise – can help Indian MSMEs with insights on product designing and marketing, making it a win-win for both the e-commerce giant and Indian companies.
Amazon’s export boost comes as India is trying to cut cheap imports from China, with Prime Minister Narendra Modi calling for the country to be “atma-nirbhar” or self-reliant.