This takes the total investment in the country to $26bn across all Amazon businesses.
The announcement was made during a meeting in the US between Andy Jassy and Indian Prime Minister Narendra Modi.
The move will create two million jobs in India and aligns with Modi’s vision of a digital and self-reliant India.
The retailer committed to digitising ten million small businesses and enabling $20bn in exports in India by 2025.
The two officials also spoke about supporting Indian start-ups, creating jobs, enabling exports, digitisation efforts, the logistics sector and empowering individuals and small businesses to compete globally.
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So far, the company has created more than 1.3 million direct and indirect jobs, digitised more than 6.2 million small businesses and enabled more than $7bn in exports.
Last month, The Hindu reported that Amazon’s cloud computing unit Amazon Web Services (AWS) plans to invest $16.4bn in the country by the end of 2030.
The investment was intended to address the country’s fast-growing customer demand for cloud services and support an estimated average of 1,31,700 full-time equivalent (FTE) jobs each year.
Earlier this year, Amazon launched its dedicated air cargo service, Amazon Air, to various Indian cities, including Delhi, Mumbai, Bangalore and Hyderabad.