Amazon Inc. plans to export about $5 billion of small-ticket items from India this year, up from nearly $3 billion in 2023, supplying markets such as the United States and Britain, according to reports.

The move by one of the world's largest e-commerce companies underscores India's growing role in the global supply chain and reflects a broader trend among multinationals to diversify their sourcing from China.

Walmart Inc plans to hike its supplies from India to $10 billion a year by 2027, up from about $3 billion in 2020.

"India is naturally one of the largest sources of selection for Amazon," says Bhupen Wakankar, director of global trade at Amazon.

Bhupen says, “Amazon had partnered with India's commerce ministry and trade associations to connect with thousands of small manufacturers across the country, offering products from textiles and jewelry to household items and Ayurveda products.”

Such items are usually easier to mail directly to overseas customers and are less susceptible to import taxes than more expensive items.

"We are investing significantly in tools and technologies to help sellers optimize their reach, enhance product discovery, and increase sales," Bhupen adds.

Amazon and Walmart's Flipkart have reshaped the Indian retail industry over the past few years, investing billions of dollars to source goods from small businesses and attract consumers with hefty discounts.

India's commerce minister accused Amazon and other e-commerce companies of predatory pricing and said the rapid rise of the sector should not disrupt the millions of physical stores operating in the country.

Last June, Amazon announced plans to increase its investment in India to $26 billion by 2030, including funding for its cloud business.

Through its Global Selling Program, launched in 2015, Amazon has enabled about 150,000 small Indian exporters to sell about $8 billion worth of goods directly to overseas consumers by the end of 2023.