Union Minister Ravi Shankar Prasad said Amazon can help in India's "digital village" mission
The centre has asked Amazon to participate in developing "digital villages" across the country, on a day the online retail giant owned by Jeff Bezos announced that it would start manufacturing its flagship gadgets in India.
The government is keen on giving traction to global sales of goods made by artisans in India and Ayurvedic products using the massive network of the internet firm owned by one of the richest people in the world.
"Ministry of IT is setting up several digital villages. Amazon can pick up a few villages in India develop them as truly digital villages. Amazon should also work with small local shops and make them a stakeholder in the larger efforts of Amazon to grow its business," Electronics Minister Ravi Shankar Prasad said on the microblogging website Koo, a platform seen as an Indian alternative to Jack Dorsey's Twitter, which has been facing criticism for alleged bias in moderating content.
"Asked Amazon India to help in taking products made by India's artisans and Ayurvedic products to global markets through eCommerce Platform. Amazon is a global company but Amazon India must evolve as a truly Indian company deeply connected with Indian business community and culture," Mr Prasad said.
The Union Minister said he met with Amazon India's top executives, Amit Agarwal and Chetan Krishnaswamy, and had "a very good conversation", while also announcing that Amazon will soon start making its proprietary products like Fire TV stick in India.
The centre's local manufacturing drive has attracted iPhone makers Foxconn and Wistron to expand in the country, and another key contract manufacturer Pegatron has also set up base in the country. India is now the world's second-biggest mobile maker.
Amazon is entangled in a legal fight in India over a deal between Future Group and Reliance Industries.
Future Group with more than 1,700 stores had agreed to sell most of its retail assets to Mukesh Ambani-led Reliance. The transaction, however, faced legal hurdles with Amazon alleging that Future, by agreeing to sell assets to Reliance, was violating terms of a deal the US retail giant had struck with a Future Group entity.