Amazon’s AI Investment to Reshape India’s Logistics

Amazon is set to advance the role of AI in India’s logistics sector through a new investment strategy. Amazon has publicised its intention to invest over US$35bn across its Indian operations by 2030. This new funding builds upon the US$40bn it has already directed into the country, reinforcing its commitment to job creation, export growth and technological innovation.

This financial commitment could greatly enhance India's trade capabilities both domestically and internationally.

An Economic Impact Report by Keystone Strategy, presented at the Amazon Smbhav Summit in New Delhi, highlighted that Amazon's cumulative investments have positioned it as the largest foreign investor in the nation.

The report details how these funds have supported extensive logistics expansion, covering both physical and digital infrastructure.

This includes the development of fulfilment centres, transportation networks, data centres and digital payment systems that help Indian businesses access comprehensive logistics services.

AI and infrastructure investment bolster growth

The strategy is focused on using technology for efficiency and growth. So far, Amazon's efforts have digitised more than 12 million small businesses, allowing them to access a broader market.

Amazon has also enabled US$20bn in cumulative ecommerce exports and supported 2.8 million direct and indirect jobs across India in 2024 in sectors including technology, logistics and customer support.

The expansion of logistics has been instrumental in helping thousands of small businesses and entrepreneurs to grow their marketplaces.

“We are humbled to have been a part of India’s digital transformation journey over the past 15 years with Amazon’s growth in India perfectly aligned with the vision of an Atmanirbhar and Viksit Bharat,” says Amit Agarwal, SVP of Emerging Markets for Amazon.

Amit adds: “We have invested at scale in growing the physical and digital infrastructure for small businesses in India, creating millions of jobs and taking Made-in-India global.”

Expanding networks and digital opportunities

Looking toward 2030, Amazon’s continued investments aim to accelerate digital transformation and fortify the country's infrastructure in alignment with India's national priorities. These priorities include expanding AI capabilities, supporting small business growth and upgrading logistics infrastructure.

By 2030, Amazon is projected to support 3.8 million jobs, partly due to its expanding fulfilment and delivery network, which creates roles in packaging, manufacturing and transportation.

Since 2013, Amazon has seen its seller community in India grow from just 100 to 1.7 million. This expansion in sellers has created a demand for more advanced logistics capabilities. In turn, the enhancement of fulfilment centres has enabled Indian sellers to build reliable networks and meet rising consumer demand.

“Looking ahead, we're excited to continue being a catalyst for India’s growth as we democratise access to AI for millions of Indians and quadruple cumulative ecommerce exports enabled to US$80bn by 2030," says Amit.

India's logistics market and digital future

Amazon's investment arrives as India's logistics sector experiences a period of substantial growth. According to Mordor Intelligence, the Indian freight and logistics market size is estimated at US$349.37bn in 2025.

Furthermore, EY predicts India will become a US$26tn economy by FY48, which is expected to amplify the nation's logistics and transportation sector.

India is expanding its footprint in global trade with operations now spanning 24 countries. This growth has attracted other major players, with DHL Group also investing in its Indian operations and Uber launching Uber Direct, its first B2B logistics service in the country.

These combined investments, particularly those focused on digitalisation, are helping to increase operational efficiency and expand networks. This activity suggests India is establishing itself as a formidable competitor in the global logistics market, with experts forecasting continuous growth.