Facebook, Google, Amazon’s entrance to India turns country to an 'E-commerce battleground'

By Staff Writer

Jan 18, 2016 05:24 AM EST

Facebook, Google, and Amazon are among the tech giants that are trying to penetrate India. Bank of America Merrill Lynch Wealth Management analysts wrote that India will be "the next e-commerce battleground" in 2016 as major tech companies will make moves to enter the country this year.

Business Insider reported that Amazon will try to conquer the online retail market in the country; Google is under negotiations to allow its internet-bearing balloons fly in the country's airspace, while Facebook continues its debates for "Free Basics" internet program in the nation.

The Verge wrote that India's Telecom and internet regulator TRAI asked the people's view on Facebook's net neutrality issue. "Should the [telecom service providers] be allowed to have differential pricing for data usage for accessing different websites, applications or platforms?" was the first question. "Are there alternative methods/technologies/business models, other than differentiated tariff plans, available to achieve the objective of providing free internet access to the consumers?" was the second question.

Meanwhile, according to India TV News, the e-commerce industry boom may have adversely affected the retail industry in the country, but it has revived another peculiar sector, the state-owned postal network, India Post. It has raked in big profit from cash-on delivery consignments from tech companies like Myntra, Snapdeal, Flipkart, and of course Amazon. This business has brought in Rs 1,000 crore from April to December 2015.

Today, the three major ecommerce players in India are Amazon's subsidiary, Flipkart, and Snapdeal. These companies received a collective amount of about $7 billion in investment. The future outlook of the country's online e-commerce customers is the prospect to watch out for.

Presently, only 20 percent of the nation's youth are online. Most are still buying products in traditional stores. However, as more and more people use smartphones and other mobile devices, online shopping in India is expected to reach up to $220 billion by 2025.

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