This article first appeared on GuruFocus.
Amazon (AMZN, Financials) said it plans to invest more than $35 billion in India by 2030 as the company accelerates its expansion in one of its most important international markets.The promise shows how India is becoming more and more important as a center for the growth of cloud computing, AI, and online shopping.
The investment comes after a lot of U.S. IT companies have spent money in the nation. Microsoft just promised $17.5 billion to AI and cloud infrastructure, which is the most money it has ever promised in Asia. Google, on the other hand, expects to spend $15 billion over five years to create AI data centers. Amazon’s new strategy is based on the $40 billion it has already spent in India since 2010 and the $26 billion it promised to spend in 2023.
Amazon claimed the funds will help it compete with Walmart-backed Flipkart and Reliance Industries’ retail unit. Over the previous decade, the company has supported more than $20 billion in exports for India and intends to increase to $80 billion by 2030. With the money, it intends to create 1 million jobs nationwide.
Investors will look for further detail on capital allocation and regional growth outlook when Amazon reports upcoming results.
