Amazon optimistic about India's ecommerce policy and further growth, says CFO
The company has doubled its paid 'Prime' subscribers in India over the last 18 months, and invested in helping Indian sellers reach global markets
Image: ShutterstockAmazon is confident that regulations in India will not hamper its long-term growth in the country where the government is considering a new e-commerce policy, comments from the CFO of the American online retail giant suggest.
“On the government side, our engagement with the Indian government makes us optimistic about partnering and collaborating to seek a stable predicable policy that allow us to continue investing in our technology and infrastructure. And it also helps us to create jobs and scale local businesses,” Brian Olsavsky, senior vice president and CFO, told analysts and investors in a conference on July 25. Olsavsky was discussing the company’s fiscal second-quarter results.
“So, we think there's a lot of shared purpose there and a good quarter where we're looking forward to the Diwali holiday this year,” he added.
Even as it faces potential anti-trust investigation at home alongside other technology giants, and closer scrutiny in Europe, Amazon continues to grow and invest in its operations in emerging markets, including India. Amazon has invested billions of dollars in India, where it has become a dominant online marketplace operator, competing with local giant Flipkart, which Walmart acquired in 2018.
Last month, India’s Commerce and Industry Minister Piyush Goyal held a second round of consultations with industry representatives, including those from Amazon and Flipkart, on the country’s proposed ecommerce policy, a draft of which was released in February. Among the points that are being discussed are India’s rules on foreign investment in ecommerce, cross-border movement of data and the way in which online marketplaces operate in India. Practices including exclusive sales, deep discounts and sales of private labels have come under government scrutiny.
On the whole, however, Amazon as well as its biggest local rival Flipkart, have continued to grow strongly in India. Talks with the government were “candid, positive and progressive … aimed at creating a vibrant e-commerce market and Digital India,” Press Trust of India cited Flipkart CEO Kalyan Krishnamurthy as saying in a statement on June 25.
