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Amazon Cloud by amazon Inc (AMZN) is expanding its operations in India, joining the list of tech companies betting big on one of the world’s fastest-growing economies.
The company’s cloud computing segment said Thursday it will invest 1.06 trillion rupees ($12.7 billion) in India before the end of the decade. Amazon estimates its latest investment will contribute $23.3 billion to India’s GDP by 2030 and support over 131,000 full-time jobs per year.
- Amazon cloud unit will invest $16.4 billion in India by 2023.
- The company previously dedicated $6.5bn to e-commerce in the country.
- Data firm IDC predicts that India’s cloud market will be $13 billion by 2026.
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Amazon has invested $3.7 billion in India since 2016 when it expanded Amazon Web Services to Mumbai. The company said it has trained more than 4 million Indians with cloud skills since then.
The move by Amazon is the latest attempt by a U.S. tech company to tap into one of the world’s fastest-growing economies.
Apple CEO Tim Cook
Apple CEO Tim Cook assured Indian Prime Minister Narendra Modi last month of Apple’s commitment to investing in the country, where it recently opened its first physical stores. And Foxconn, one of Apple’s biggest suppliers, will spend $500 million on a factory in the Indian state of Telangana, state officials said Monday.
India overtook China last month as the world’s most populous country and is forecast to be the world’s third-largest economy by 2027. India’s cloud services market is expected to expand at a compound annual growth rate of 24% to reach $13 billion by 2026.
According to AWS
According to AWS, its presence in India has a positive impact on various aspects of the local economy, including the development of the workforce, training and skill-building opportunities, community engagement, and sustainability initiatives. The company currently operates two data centre infrastructure regions in India: the AWS Asia Pacific (Mumbai) Region, which was launched in 2016, and the recently launched AWS Asia Pacific (Hyderabad) Region in November 2022.
AWS adds that the establishment of two AWS Regions in India offers customers in the country increased options for running workloads with enhanced resilience and availability. These regions also enable secure data storage within India and provide low-latency services to end users.
Between 2016 and 2022, AWS has made a significant investment of over ₹30,900 crore in the AWS Asia Pacific (Mumbai) Region. This investment encompasses both capital and operating expenditures associated with the construction, maintenance, and operation of the data centers in that region.
AWS estimates that its overall contribution to India’s gross domestic product (GDP) during the period from 2016 to 2022 surpassed ₹38,200 crore (equivalent to USD 4.6 billion). Additionally, this investment has supported the creation of nearly 39,500 full-time equivalent (FTE) jobs in Indian businesses on an annual basis.
“Prime Minister Narendra Modi’s Digital India vision is driving (the) expansion of cloud and data centres in India,” Union Minister of State for Electronics and Information Technology Rajeev Chandrasekhar stated in a statement.
“MeitY is also working on a Cloud and Data Center Policy to catalyse innovation, sustainability, and growth of India Cloud,” the minister added.
Puneet Chandok, the President of Commercial Business at AWS India and South Asia, expressed that the intended investment will have far-reaching positive impacts, assisting India in its journey towards becoming a leading force in the global digital landscape.
(With inputs from Reuters and PTI)
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