Amazon promises $20 Bn in Indian exports by 2025
                     Amazon promises $20 Bn in Indian 
exports by 2025
Amazon committed to facilitating exports of Indian goods worth $20 
billion in  the  coming  three  years.  The  announcement  came  in  its 2022  
Exports Digest.  Averaged  out,  that  translates  to  around  $2  billion  a  
year  in  exports since 2015, when the company first started working with 
medium, small and micro enterprises (MSMEs) and other firms to have 
Indian goods shipped to Amazon customers in other countries.
But  the  company  only  crossed  $2  billion  in cumulative exports  (and  
not yearly exports) in 2020, which means that until that year it was 
facilitating an average of $400 million in yearly exports, and will now have 
to clock over $5 billion a year to hit this goal.
“Exporters on the [Amazon Global Selling] program are on track to 
surpass the $5 billion milestone in cumulative exports. Importantly, the 
program took 3 years to enable the first billion dollars in exports, while 
the last 2 billion have  come  in  just  17  months,”  Amazon’s  top  
executive  for  India,  Amit Agrawal, said in the Exports Digest.
The  top-growing  product  categories  for  Indian  exporters  are  apparel,  
toys, jewelry, and books. Over a thousand retailers clocked over Rs 1 crore in 
sales to the 17 other international markets where Amazon operates, the 
company said.
The  announcement  of  the  new  cumulative  export  goal,  which  was  
made alongside  an endorsement from  a  Union  Minister,  comes  as  
Amazon  faces tensions and legal setbacks in India that might threaten its 
growth in India. The company is locked in a legal battle with Reliance 
Industries Limited over control  for  the  Future  Group’s  retail  assets,  
which  the  e-commerce  giant argues it had the right to veto. Two of the 
platform’s main retailers, Cloudtail and Appario, were raided by the 
Competition Commission of India, which is looking  into  whether  those  
firms  are  being  given  an  unfair  advantage  on Amazon.
With  this  announcement,  though,  Amazon  is  likely  seeking  to  gain  
some level  of  political  and  economic  leverage  —  the  company  has  had  
fraught relations  with  brick-and-mortar  traders,  a  group  that  has  
accused  it  of predatory pricing and skirting legal norms. “Amazon is 
flouting all laws and FDI policy of the Government and trying to creating a 
monopolistic market in India since a long time and there is no transparency 
on [the company’s] e- commerce  portal  thereby  causing  huge  damage  to  
small  retailers  of  the country,” Praveen Khandelwal, the Secretary General 
of the Confederation of All India Traders said in a statement last Thursday.
Spotlighting ties with MSMEs has long been a tool in Amazon’s arsenal 
to counter this  rhetoric, as  a way of  arguing that  it’s  actually helping the 
very groups  whose  representatives  accuse  it  of  threatening  their  
existence.  The company has in the past advertised its smaller sellers in its 
marketing, even though Reuters reporting revealed that Cloudtail accounted 
for 40% of sales on the platform.
In doing so, it has also followed a well worn path by large foreign 
retailers, notably  Swedish  furniture  giant  Ikea,  which  has  promised  to  
increase  local sourcing as well as take made in India to markets worldwide
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