Amazon India to Invest Over Rs 2,000 Crore in 2025 to Expand Operations
| 2025-06-20
Amazon will use the investment to launch new sites and upgrade its fulfilment, sortation, and delivery network across India.
Amazon India will invest more than Rs 2,000 crore in 2025 to expand and upgrade its logistics and fulfilment network across the country.
Amazon boosts India operations with Rs 2,000 crore investment
Amazon India will inject over Rs 2,000 crore (approximately $233 million) in 2025 to strengthen its pan-India operations, the e-commerce giant announced on Thursday. The investment will fund the expansion of its logistics infrastructure, technology upgrades, and employee welfare initiatives.
The planned expenditure aims to enhance Amazon’s fulfilment, sortation, and delivery network throughout India, allowing faster and more efficient service to customers in all serviceable regions. The company said the move is part of a long-term strategy to reinforce its operational footprint across one of the world’s fastest-growing e-commerce markets.
Infrastructure expansion and innovation
Amazon intends to launch new facilities and upgrade existing sites to increase processing capacity, reduce delivery times, and boost efficiency across its supply chain. These investments include intelligent warehouses and last-mile delivery systems tailored to India’s diverse geography and address formats.
Buildings in Amazon’s network, both current and planned, will incorporate energy-efficient systems and inclusive design. The company emphasised improvements in accessibility, especially for people with disabilities, and enhancements in employee comfort, such as better cooling systems, rest areas, and safety features.
“By strengthening infrastructure capabilities, enhancing processing capacity, and implementing advanced technology, Amazon is positioning itself to better serve customers throughout India while supporting employees, associates and partners who are the heart of it all,” said Abhinav Singh, Vice President of Operations for Amazon India and Australia.
Employee welfare and safety focus
In addition to physical infrastructure, Amazon is investing in initiatives to improve the health, safety, and financial well-being of its workforce. This includes expanding its Ashray programme, which provides rest stops for delivery associates with basic amenities such as seating, clean water, charging points, and restrooms—even for those outside Amazon’s direct delivery network.
Another initiative, Samridhi, offers financial education and support to associates and delivery drivers, aiming to improve long-term financial stability. These programmes are part of a broader employee support strategy that Amazon says is vital to the sustainability of its growing operations.
The company also plans to offer free health check-ups to more than 80,000 delivery associates and partners through medical camps across India by the end of 2025.
Leveraging technology for operational efficiency
Amazon is deploying tools to make delivery processes safer and more transparent. This includes technology to monitor delivery speeds, encourage rest breaks, and balance route difficulty among drivers. The driver app is being updated to improve earnings transparency and navigation, particularly in areas with unstructured address systems.
New self-guided workflows and photo-based item verification systems aim to reduce the cognitive load on delivery associates, thereby improving both performance and job satisfaction.
Commitment to Indian market growth
Amazon's latest announcement reflects its confidence in India’s expanding e-commerce ecosystem. According to industry estimates, the Indian online retail market is projected to grow at a compound annual growth rate of 21% and reach $325 billion by 2030.
Global players like Amazon and Walmart-owned Flipkart, alongside domestic startups, have poured billions of dollars into India’s digital commerce sector, driven by rising internet penetration, affordable smartphones, digital payment platforms, and a young, mobile-first consumer base.
Amazon’s cumulative investments underline its intent to remain competitive in this high-growth environment, while also supporting local employment and small businesses connected to its vast logistics network.
Context: India’s e-commerce landscape
India’s e-commerce market has seen rapid transformation over the last decade, with foreign and domestic firms investing heavily to capture market share. Infrastructure development and customer experience have become key differentiators as companies battle to serve a growing digital customer base.
Amazon entered the Indian market in 2013 and has since developed a vast network of fulfilment centres, sortation hubs, and last-mile delivery stations. The company also operates multiple seller programs aimed at onboarding small and medium-sized enterprises across urban and rural India.
Thursday’s announcement adds another chapter to Amazon’s long-term commitment to India and underscores the strategic importance of logistics in enabling seamless, large-scale digital commerce.
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