Amazon plans ₹2,000 crore push to expand warehousing

Amazon has announced plans to invest around ₹2,000 crore ($233 million) in India in 2025, to scale up its logistics and delivery infrastructure, improve service speed and reliability, and enhance the welfare of its employees and delivery partners, the e-commerce giant said on Thursday.

The investment will go towards Amazon India‘s new fulfilment centres, sortation hubs, and delivery stations across the country. The company also plans to upgrade existing facilities with automation, better cooling systems, safety features, and rest areas, including infrastructure designed for people with disabilities.

“Over the past decade, we’ve built one of India’s most extensive logistics infrastructures,” said Abhinav Singh, vice president of operations for Amazon India. “This fresh investment is part of our long-term commitment to improve delivery speed, enhance safety, and support the people who power our network.”

Boosting infrastructure and upgrading facilities

The new funds will also be used to open more fulfilment centres and improve the ones already in place. Amazon wants to speed up deliveries and handle orders more efficiently across its serviceable pin codes in India.

Its warehouses, built at scale with a focus on automation, are also being upgraded to be more energy-efficient and accessible, with features like better cooling, enhanced safety measures, and rest areas for workers, including those with disabilities.

Amazon said these changes will help improve the customer experience while also creating jobs and supporting small businesses in the areas it operates.

Worker welfare and safety prioritised

A portion of the funding will support employee welfare initiatives. Programmes such as Ashray, which provide rest stops for delivery workers, will be expanded. Other schemes, including Samridhi (financial literacy), Pratidhi (scholarships), and Sushruta (healthcare for truck drivers), will also be scaled up.

Amazon said it aims to reach over 80,000 delivery personnel with health check-ups by the end of 2025.

All associates, including delivery staff, are covered by insurance and have access to on-site first aid.

Safety upgrades for delivery workers

Amazon is also investing in safety and efficiency tools for delivery workers. These include tech to monitor routes, balance workloads, and send helmet-use alerts.

A new Helmet Adherence Application is being introduced to verify proper helmet usage before trips and send real-time safety alerts. Updates to Amazon’s Driver app will provide clearer earnings transparency, simplify navigation in areas with poorly structured addresses, and introduce photo and video-based item verification to ease cognitive load.

Additionally, onboarding processes for drivers are being refined to make joining Amazon’s network quicker and more intuitive.

India’s e-commerce sector to touch $325 billion by 2030

The announcement comes as India’s e-commerce sector is projected to grow at a compound annual growth rate (CAGR) of 21 per cent, reaching a market size of $325 billion by 2030, fuelled by increased smartphone usage, growing internet access, digital payment adoption, and rising middle-class spending.

Meanwhile, competitor Flipkart is preparing for what could be one of India’s largest tech IPOs, targeting a public listing by late 2025 or early 2026. As part of the plan, the Walmart-backed e-commerce firm is shifting its holding company to India from Singapore.

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