Amazon is to set up five additional fulfilment centres in India which it says will double its distribution space to more than 500,000sq.ft. This follows an announcement by local competitor Flipkart that it had raised $1 billion in new funding. Forrester Research has estimated that online spending in India will reach $16 billion by 2018 with mobile penetration fuelling the boom. Indian government restrictions on foreign investment has restricted Amazon and other overseas enterprises causing them to adapt their business models. Amazon chose to set up a marketplace offering sales and fulfilment services to Indian retailers rather than sell direct itself. It also has a search and comparison site for India which is called Junglee.
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