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Amazon is investing $2 billion in its year-old India operations

Despite the fact that Amazon's India marketplace launched just over a year ago, Amazon announced Wednesday that it's pouring an additional $2 billion into the operation.

The announcement comes a day after Indian e-commerce startup Flipkart — an Amazon rival founded by former Amazon executives — raised $1 billion in new funding.

In a statement released by Amazon, Jeff Bezos says he sees "huge potential" in Indian e-commerce, a base that continues to grow:

After our first year in business, the response from customers and small and medium-sized businesses in India has far surpassed our expectations. We see huge potential in the Indian economy and for the growth of e-commerce in India. With this additional investment of US $2 billion, our team can continue to think big, innovate, and raise the bar for customers in India.

At current scale and growth rates, India is on track to be our fastest country ever to a billion dollars in gross sales. [Amazon]

Amazon says that it's India's biggest e-commerce site, but it's more than a coincidence that the news comes on the heels of Flipkart's funding success.