Amazon India to Increase Domestic Production and Inks MoU with DPIIT

Amit Agarwal, senior vice president for India and developing markets at the US-based retailer Amazon, announced on Tuesday that the company will set aside $120 million (about Rs 1,000 crore) for companies that are concentrating on promoting domestic manufacturing and creating international brands from India.

The declaration was made in order to support domestic manufacturing through a memorandum of agreement between Amazon India and the Department for Promotion of Industry and Internal Trade.

In 2021, Amazon established the $250 million Smbhav Venture Fund, initially concentrating on the healthcare and agricultural industries. Since then, it has grown to encompass direct-to-consumer companies and industries including fintech and gaming. Brands including Acko, FreshToHome, Cashify, Fitterfly, and M1xchange are among those in its portfolio.

At Amazon Smbhav, the company's premier annual summit, Agarwal declared, "We are quadrupling our focus in that area, motivated by the progress that we made in driving exports out of India. We are also launching two new capabilities and solutions for businesses and direct-to-consumer brands in India: Amazon Freight and Amazon Shipping."

On demand, Amazon Freight will provide merchants with complete truckload intra-city and inter-city capabilities. The business serves over 14,000 pin codes.

In order to establish effective delivery networks throughout the country, it has made large investments in technology, capabilities, logistics, and artificial intelligence (AI), according to Agarwal.

Amazon India's recently hired country manager, Samir Kumar, stated that the online retailer will keep its attention on the nation's small and medium-sized enterprises by making it easier for small producers and vendors to sign up and sell their goods.

On September 18, Kumar took over as Amazon's India head, succeeding Manish Tiwary, who resigned in August. As part of its long-term strategy, Amazon India will also keep its attention on its customers.

"Our flywheel is all about choice, providing excellent value and ease of use," Kumar stated. "The expansion of ultra-low-priced products with absurdly cheap pricing is one of the projects we'll witness. We intend to expand Amazon Bazaar, which was just started. We intend to expand Amazon Bazaar, which was just started. Additionally, we purchased MX Player, which will enhance our products and boost sales."

On April 6, Amazon India launched Bazaar with the goal of offering inexpensive, unbranded fashion and lifestyle items. As part of its plan to diversify its offerings in India's expanding video streaming services sector, the business purchased video streaming issue MX Player on June 8.