How Amazon’s AI Investment Will Support Procurement in India

Amazon plans to invest US$13bn in India to advance technology and data centres.

Building on its US$35bn funding from 2025, this investment focuses on scaling AWS data centre capacity in Hyderabad and Mumbai. These expanded facilities will provide government organisations, enterprises and startups both in India and globally with the infrastructure needed to manage cloud technologies, develop AI services and source AI chips.

Amazon CEO, Andy Jassy, says: “For over a decade, we have been serving customers, sellers, developers, startups and enterprises through our different businesses. The response has been tremendous, with strong growth especially across our ecommerce, AI and cloud businesses.

“As we grow Amazon in India, our business priorities align with India’s priorities of democratising access to AI, digitizing small businesses, creating jobs and enabling exports and we are investing over US$48 billion in the coming five years to meet the strong demand across our business in India and to help India achieve these priorities.

"We are inspired by Prime Minister Modi’s vision of a Viksit and Atmanirbhar Bharat, we are committed to being a long-term partner in India’s growth story.”

Amazon is maintaining its investment focus on India’s ecommerce and quick commerce sectors to support sustained procurement. As part of this strategy, the company plans to establish 20 fulfillment centers alongside more than 100 last-mile delivery stations within tier 3 and 4 cities throughout 2026.

Furthermore, Amazon introduced its ‘Sammaan’ initiative, which is a program designed to support delivery associates through on-road safety protocols, insurance benefits and educational scholarships for their children.

Amazon’s previous investments in India

By 2026, Amazon's financial commitment to the territory has exceeded US$88bn. This capital has facilitated the digital transformation of 12 million small enterprises and driven more than US$20bn in total ecommerce exports.

Furthermore, the company has fostered 2.8 million employment opportunities, which includes providing cloud technology training to 10 million Indian citizens.

In addition to being the premier facilitator of e-commerce exports and one of the nation's largest employers, Amazon stands as the leading foreign investor in India.

AI accessibility in India

Amazon's strategic investments are rooted in a desire to increase AI access across India, directly fueling the nation's digital evolution. Looking ahead to 2030, the company is focusing on AI-powered digitisation, bolstering export potential and driving significant job creation.

AI integration is already a reality for Amazon.in sellers, who benefit from advanced features like Next Gen Selling and the Seller Assistant. For shoppers, the company prioritises AI-driven tools such as Rufus for conversational commerce and Lens AI for visual searching. Additionally, multilingual interfaces are being deployed to overcome literacy hurdles and enhance the consumer experience.

To support India's National Education Policy 2020, Amazon is leveraging its technical proficiency and nonprofit collaborations to support AI education.

This initiative includes the development of specialized curriculums for millions of students, focusing on AI training, career development and products designed for teacher instruction.