Amazon to Invest $35 Billion in India’s AI Sector as Part of 2030 Expansion Plan

As hyperscalers compete for market share, Amazon pledged on December 20 to invest more than $35 billion in India's cloud and AI space by 2030. The pledge, which was made public at the Amazon Smbhav Summit in New Delhi, expands on the almost $40 billion that has previously been invested in the nation. The new funds will focus on AI-driven digitisation, export expansion, and job development, according to a press statement from Amazon.

This aligns with India's national ambitions to strengthen its local AI environment. According to Amazon, the initiative is anticipated to increase exports to $80 billion by 2030, create an extra 1 million direct, indirect, induced, and seasonal jobs in India, and help 15 million small companies with AI.

Sharing his views on the development, Dipal Dutta, CEO at RedoQ said, "From a competitive perspective, Amazon’s move into India with $35 billion is going to shake up the entire tech industry. Firstly, the level of investment shows that India is a primary market for innovation and consumption. Therefore, for any global tech company, ignoring a market that connects 15 million small businesses and generates $80 billion in exports is no longer an option. Secondly, by providing tools like 'Seller Assistant' to millions of small entrepreneurs, Amazon is tapping into local commerce. It is making AI a practical tool that will help street vendors or small manufacturers grow their businesses. The integration will make Amazon indispensable for the vendors, and create a massive network effect."

Echoing similar sentiments, Shammik Gupta, CEO of 3-Cubed said, "Amazon’s $35 billion AI investment matters because India doesn’t need more AI experiments — it needs AI that helps large organisations run better. Most institutions still struggle with basic operational questions: What drives cost? Where do delays occur? How do we improve citizen and customer experience without weakening compliance and control? AI becomes valuable only when it helps answer these questions with clarity and speed. If this investment expands dependable, in-country AI infrastructure, it lowers friction for organisations trying to modernise the way they manage process, risk, operations, finance, IT, and talent. The real opportunity isn’t in creating new AI tools. It’s in enabling better execution — smoother workflows, faster cycle times, more consistent decisions, and stronger governance."

"Amazon’s announcement to invest $35 billion in India’s AI sector by 2030 is a defining moment in our country’s digital evolution. This investment signals not just confidence in India’s technological promise, but a clear recognition of the depth, scale, and innovation potential that our digital ecosystem holds. As AI becomes the strategic foundation for future economies, India is uniquely positioned to lead—with its rapidly growing talent pool, strong data center infrastructure, expanding interconnection fabric, and an entrepreneurial environment that continuously pushes the boundaries of what’s possible," said Sudhir Kunder, Chief Business Officer, DE-CIX India.

Amazon Betting High on India’s Booming Digital Economy

The investment demonstrates Amazon's stake in India's thriving digital economy, where it has been constructing data centres, fulfilment centres, and payment infrastructure. Additionally, as Big Tech companies step up their efforts to enter the market, Microsoft recently announced plans to invest $17.5 billion in India's AI infrastructure.

Amazon is delighted to have contributed to India's digital development over the past 15 years, according to Amit Agarwal, senior vice president for emerging markets. As it democratises access to AI for millions of Indians, Amazon looks forward to continuing to be a driving force behind India's development.

Amazon’s Contribution in India’s Economy

According to Amazon, it has made it possible for India to export more than $20 billion. By 2030, the company wants to enable a total of $80 billion in e-commerce exports from India. The company started a manufacturing-focused programme called "Accelerate Exports" to link digital entrepreneurs with manufacturers and help manufacturers become successful international sellers.

Amazon will conduct on-site onboarding efforts in more than ten manufacturing clusters throughout India, including Tirupur, Kanpur, and Surat, as part of the initiative. Amazon and the Apparel Export Promotion Council of India announced a significant collaboration at the Smbhav summit to expand and scale the initiative throughout India.

"India’s stated ambitions for 2030 include becoming a global AI hub. Amazon’s investment validates that ambition and provides the fuel to drive it forward. This marks the beginning of a decisive decade where India can shape AI for scale, inclusion, and global competitiveness. When global leaders expand aggressively, they bring with them not just capital but also standards, skill development, research momentum, and a deeper industry network. This helps elevate the entire AI value chain. It will push domestic companies to innovate faster, strengthen India’s digital public infrastructure, and create opportunities for millions of AI-skilled professionals," said Satisha Naraharimurthy, Founder & CEO, Roombr.

Amazon India Eliminated Referral Fee for Sellers

According to an Economic Times report, Amazon India has eliminated the referral fee for sellers of goods under INR 1,000 until December 31. Depending on the product category, the referral fee, a commission that Amazon charges for every sale, normally varies from 2 to 16.5%. The waiver was previously only valid through November 30. Although not all products are covered by the most recent extension, the move is comparable to a tactic used by Flipkart, which is supported by Walmart.

Flipkart implemented a zero-commission policy for items under INR 1,000 two weeks ago. Additionally, regardless of price, vendors can now post products on Shopsy, its hypervalue portal, without having to pay a commission. Value-commerce websites like Meesho, which primarily rely on advertising and logistics markups rather than seller commissions to generate revenue, are the target of the campaign.