Amazon is upping its game in India further by investing $3 billion in the emerging economy. The company's CEO Jeff Bezos announced the new initiative, which will take the e-commerce giant's total investment in India to $5 billion.

Speaking at an event in Washington, Bezos said, "We have already created some 45,000 jobs in India and continue to see huge potential in the Indian economy."

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He also said that the company's performance in India surpassed "even our most ambitious planned milestones." The event was also attended by Indian Prime Minister Narendra Modi, who is currently visiting the United States.

Amazon is facing stiff competition from homegrown e-commerce companies such as Flipkart and Snapdeal. However, Amazon claims to be one of the most visited sites in India. The company is also changing its business practices to suit the Indian milieu. Speaking at Code Conference last week, Bezos said, "We're adapting to the local model."

Amazon did not specify what its investment will be used for. However, last year, the company had announced its plans to open a data center in India to better serve its customers. The company is expected to open a Web Services Cloud in the region this year.  Amazon investment comes at a time when its domestic rivals are facing funding crunch.

In the last few months, Flipkart has seen a decline in its valuation.

Amazon is following a pure marketplace model in India, mostly to comply with local regulations. It has also tweaked its delivery and warehousing practices to better suit the local environment.

TagsAmazon, Flipkart, Snapdeal, India