Fri. Mar 29th, 2024
Amazon Future Retail Samara Capital

With the government of India pushing for the “Make in India” initiative for an Atma Nirbhar Bharat, Amazon joins the movement and is about to set-up a manufacturing plant in Chennai to produce Fire TV Sticks. The MeitY welcomes Amazon for this initiative as this will boost the pandemic-hit Indian economy and create domestic jobs.

The American e-commerce giant will start producing Fire TV Sticks in Chennai later this year. The manufacturing will be done by a contract manufacturer Cloud Network Technology, a subsidiary of Foxconn with aid from the government of India as a part of a production-linked incentive.

Amazon claims that this manufacturing program will be able to produce hundreds of thousands of Fire TV Sticks to meet the demands of the Indian market and planning to escalate the plant capacity with future demands through a blog post.  

Before the announcement, Ravi Shankar Prasad, Minister for Communications, Electronics & Information Technology and Law & Justice, had a video conference with Amit Agarwal, SVP and Country Head, Amazon India, where he discussed various issues regarding the digital sector and suggested Agarwal to market products made by Indian artisans and India’s ayurvedic products through the e-commerce platform.

Ravi Shankar welcomed Amazon’s decision to set-up a manufacturing plant in India. He believes India is an attractive investment destination and will play a major role in the supply of digital products globally.

He also delightfully shared that the government’s decision to provide production-linked incentives has received a massive response globally. He added that Amazon’s decision to set-up a manufacturing plant in India is welcomed as it will enhance domestic production capacity and create jobs as well, which is a big boost for Atma Nirbhar Bharat(Self-Reliant India).

Amit Agarwal, through the blogpost, revealed that Amazon will invest USD 1 billion to digitize 10 million small and medium businesses, by partnering up with the Indian government, help Indian businesses sell worldwide thereby enabling USD 10B in cumulative exports, and create additional 1MM jobs by 2025. Agarwal stressed the fact that Amazon India is committed to the Modi government’s “Make in India” initiative.

With Amazon setting up production plants in India, many other multi-national companies will also enter the Indian market, starting with Tesla Inc, which is about to start production in Karnataka. These movements will help recover and boost the pandemic-hit Indian economy.