On Wednesday, Amazon pledged to allocate more than $35 billion into India’s cloud and AI sectors by 2030, as major players compete for a stake in the market.
This commitment, announced at the Amazon Smbhav Summit in New Delhi, enhances the nearly $40 billion already invested in the nation.
In a press release, Amazon indicated that the new investment will focus on AI-driven digitalization, export expansion, and job creation, in line with India’s national goals to develop its local AI ecosystem.
By 2030, Amazon forecasts that this initiative will create an additional 1 million direct, indirect, induced, and seasonal jobs in India, quadruple exports to $80 billion, and provide AI advantages to 15 million small enterprises.
India is among the fastest-growing regions for AI expenditures in the Asia Pacific, according to Deepika Giri, IDC’s regional head of research for big data & AI, speaking to CNBC.
“A significant gap, thus a considerable opportunity, exists due to the lack of adequate compute infrastructure for executing AI models,” Giri remarked.
She further noted that nations throughout Asia are hastening efforts to establish national AI capabilities as the technology becomes increasingly localized because of trade disputes and tariffs, with infrastructure being a fundamental aspect of these strategies.
This investment underscores Amazon’s confidence in India’s flourishing digital economy, where it has been developing fulfillment centers, data centers, and payment infrastructure.
This move also follows closely after Microsoft disclosed plans to invest $17.5 billion in India’s AI infrastructure as major tech companies ramp up their presence in the market.
“We are honored to have participated in India’s digital transformation journey over the last 15 years,” stated Amit Agarwal, senior vice president for emerging markets at Amazon.
“Looking forward, we’re eager to continue serving as a catalyst for India’s progress, as we democratize access to AI for millions of people in India.”
