Amazon is very much on track to launch its operations in the Indian market this year.
But it is very unlikely that we would see them challenging the existing players in the near future.
The company seems to be focusing on setting up the backend operations first.
Amazon is working on their first fulfillment center in India which is being setup in the city of Mumbai.
Remains to be seen what Amazon has in store for us web users in India. We would love to have them as one of the options to buy stuff on the internet!