Despite the surge in investment and growth, Amazon wholesale India continued to operate at a loss past year, reporting an 8% decline in revenue and losses of Rs 5,685 crore (£614m). But his commitment towards creating sustainable growth for the country is here to stay, the CEO said. At an event in New Delhi, he announced that the company was investing $ 1 billion new for its operations in India and said it would work to help millions of small merchants connect for the first time.
Bezos has praised India during his visit, saying the 21st century will be the Indian century and calling the country's dynamism and energy "something special".
A government minister dismissed Bezos's announcement that Amazon would invest US$1 billion, and a leading ruling party member hit out at his ownership of the critical Washington Post. Some people think that I have said negative about Amazon.
He is seen immersing in Indian experiences-starting with a tribute to Mahatma Gandhi, meeting kirana store owners, and sporting traditional Indian attire even as he faced protests from traders' associations and battled allegations by India's competition watchdog. "Jeff Bezos should go home tell Washington Post what is his impression about India", Chauthaiwale told Reuters.
Small businesses say they've been hit by Amazon and Walmart's Flipkart which flout regulations and burn billions of dollars to offer steep discounts.
"We welcome all kinds of investments that follow the letter and spirit of the law".
"Jeff Bezos doesn't tell Washington Post journalists what to write", a senior editor at the publication owned by the Amazon CEO tweeted, in response to a post by BJP leader Vijay Chauthaiwale who has alleged that the newspaper's editorial policy is "highly biased". "Our investments in India will create a further 1 million jobs throughout the nation by 2025", Jeff Bezos mentioned in a letter posted on Amazon.in on Friday.
While the online commerce market in India is already worth about $39bn, and growing by the day, the country is still largely reliant on its 12m independent neighbourhood shops, which account for nearly 90% of the country's retail sales.
Additionally, the letter mentions how more than 550,000 mall and medium businesses (SMBs) in India are using Amazon India to reach out to the masses.
Union Commerce Minister Piyush Goyal said on Thursday that e-commerce firm Amazon was not doing "India a great favour" by investing $1 billion in the country.
CAIT said the minister was also urging small traders to adopt and prepare for future online trading. "If they are bringing in money to finance losses.it certainly raises questions as to where the loss came from", Goyal said, adding that Amazon could be engaged in "predatory pricing or some unfair trade practices" to help it absorb losses. By hitting out at the global players and raising the issue of deep discounts, the Centre appears to be trying to placate small traders who are unhappy with the dominance of the online platforms.