As Indian PM is on the US tour, tech Giant Amazon plans on continuing to invest in India in order to march closely with competitors in the country who are pouring in billions in funding.
According to a news report in TechCrunch, following a meeting with India’s Prime Minister Narendra Modi in Washington on Monday Bezo said in a tweet that he is excited to keep investing in the country.
— Jeff Bezos (@JeffBezos) June 25, 2017
This kind-of-announcement was done at time when Indian PM is on trip to US and hold a meeting with almost all CEOs of tech companies based out the US including Amazon CEO & founder Jeff Bezos. While back home in India, e-commerce companies like Flipkart and Uber’s Indian competitor Ola is crying for “level playing field” for Indian startups instead of giving head-on competition.
This is interesting to see that inspite of the fact that CEOs of Indian startups crying foul over US-based companies doing business in India PM Modi still held meeting with tech CEOs of US companies demanding to invest more in Indian market.
Sachin Bansal, executive chairman of Flipkart, the country’s largest ecommerce company said earlier this year that, “We have the opportunity to build great internet companies from India, but we need to create a fair playing field. If we are able to create that level playing field, Indian companies will have significant advantages”.
Paytm founder Vijay Shekhar Sharma, MakeMyTrip chief executive Deep Kalra also supported Sachin Bansal on this issue as he said, “I’m totally with Sachin on the level playing field. Foreign companies do need to fulfil conditions, like two-factor authentication. There are companies who do not have to pay service tax, because they are not domiciled in India. Their servers and legal entities are somewhere else, but they are servicing Indian customers”.
Its been four years since Amazon entered Indian market and unlike China the company has been able to gain ground over local competitors like Flipkart and Snapdeal. India is now Amazon largest market in the World outside the US.
An year back, Jeff Bezos said the company would invest $3 billion to expand the Amazon India business after initially investing $2 billion in 2014. In April, the CEO hinted that it would invest more in the Indian unit, noted the report.
India’s internet market has a population that’s projected to reach between 450 million to 465 million this summer. While China and the U.S. are the leaders in eCommerce spending around the globe, India is forecasted to increase to $48 billion by 2020