Interestingly, Amazon is dialing down its cooperation with China while shifting its focus towards India. The e-commerce giant has revised its priorities and partners.

The tech giant plans to export small goods worth $5 billion from India this year. In 2023, this figure did not exceed $3 billion. These goods are easy to ship directly to overseas customers and are less affected by import taxes than more expensive products.

According to analysts, this move signals a shift away from China. Such actions by one of the world’s largest e-commerce players indicate India's growing role in the global supply chain. Experts believe these steps are part of a worldwide trend, showing a pivot from China to India, which is being adopted by multinational corporations. India is one of Amazon’s largest sourcing choices, Amazon director for global trade Bhupen Wakankar said.

Meanwhile, Amazon is working with India’s Ministry of Commerce and trade associations to establish connections with thousands of small manufacturers across the country, offering products from textiles and jewelry to household items, Wakankar added. He is confident that such measures will help sellers improve product sourcing and pump up sales.

According to Amazon’s plans, the company aims to achieve an overall e-commerce export volume of $20 billion from India by 2025. In June 2023, the company announced its intention to increase investments in India to $26 billion by 2030. Last year, Amazon helped 150,000 small Indian exporters sell goods worth $8 billion to foreign consumers, Wakankar pointed out. This success was made possible by the global selling program launched in 2015.

Recently, Amazon and Flipkart, India’s marketplace owned by Walmart, have transformed the Indian retail landscape. The companies have invested billions of dollars in purchasing goods from small businesses, in parallel attracting buyers with generous discounts. However, this thriving business faces criticism from trade and political organizations. Recently, India’s Minister of Commerce accused Amazon and other e-commerce companies of “predatory pricing.” He argues that the rapid growth of this sector could disrupt the operations of millions of stores across the country.