Amazon, the e-commerce giant, has announced its plans to start producing Amazon Devices in India. This is India’s first Amazon production line and reiterates the commitment of the company to the ‘Make in India’ of the Government of India for an Atmanirbhar Bharat.
The firm has not disclosed the amount it is proposing to invest.
Amazon will begin its manufacturing efforts with the Cloud Network Technology contract manufacturer, a Foxconn subsidiary in Chennai, and start production later this year. Each year, the device manufacturing program will be able to produce hundreds of thousands of Fire TV Stick devices that meet the demands of India’s customers. Depending on domestic demand, Amazon will continuously evaluate the scaling capacity of additional markets and cities.
“Amazon is committed to partnering with the Indian government to advance Aatmanirbhar Bharat’s vision,” said Amit Agarwal, Amazon India’s global senior vice president and country leader. We have pledged to invest $1 billion to digitize 10 million small and medium-sized enterprises, to help Indian enterprises sell globally, to enable cumulative exports of $10 billion, and to create an additional 1 million jobs by 2025.
Ravi Shankar Prasad, Minister of Communications, Electronics & Information Technology, and Law & Justice of the Government of India briefed Agarwal on the details of the initiative on Tuesday.
In a series of tweets, Prasad said that India is an attractive investment destination and is poised to become a major player in the electronics and IT products industry in the global supply chain. He said there was a tremendous response globally to the government’s decision to launch a Production Linked Incentive (PLI) Scheme.
“We welcome the decision by Amazon to set up a production line in Chennai, as it will increase domestic production capacity and create jobs as well,” Prasad said. “This will further our mission of creating a digitally empowered Atmanirbhar Bharat.”
Prasad said he asked Amazon to assist with the eCommerce platform in taking products made by Indian artisans and Ayurvedic products to global markets. In addition, he suggested that the e-commerce giant develop and develop a few villages in India as fully digital villages as part of the digital village program of the IT ministry. He added, “Amazon should also work with small local shops and make them a stakeholder in the larger efforts of Amazon to grow its business.”
In 2020, Amazon announced the ‘Local Shops on Amazon’ program, which is Atmanirbhar for retailers and local shops, and benefits from online sales. It now has over 22,000 nationally registered neighborhood stores collecting additional footfalls through its online presence and expanding its earning potential by acting as pickup points, logistics partners, and e-commerce experience centers.