New Delhi, India (BBN) - Amazon, one of the world's largest online retailers, has said it will invest a further $2.0 billion (£1.2 billion) to boost its operations in India.
The firm said India is on track to become "our fastest country ever" to reach $1.0 billion in gross sales, the BBC reported.
Amazon's move comes a day after India's largest e-commerce firm Flipkart raised $1.0 billion in fresh funding, the largest ever for an Indian internet firm.
India's total e-commerce market was worth $13 billion in 2013.
But online travel accounted for more than 70 per cent of the transactions.
According to research firm Forrester, online sales of retail goods were worth $1.6 billion last year.
However, that number is expected to reach $76 billion by 2021 as more people across the country get connected to the internet.
"We see huge potential in the Indian economy and for the growth of e-commerce in India," Jeff Bezos, chief executive of Amazon, said in a statement.
"After our first year in business, the response from customers and small and medium-sized businesses in India has far surpassed our expectations."
BBN/SSR/AD-30JUly14-2:05 pm (BST)