Now playing
03:46
Rush shipping is often free. But the environment could be paying for it
LIVE from #IITBombay Virtual Convocation: President of India
LIVE from #IITBombay Virtual Convocation: President of India's Medal for 2020 goes to Sahil Hiral Shah, http://B.Tech in Computer Science & Engineering Check out virtual avatar of the student receiving medal from Chief Guest and Nobel laureate Prof. @FDuncanMHaldane
PHOTO: PIB in Maharashtra/Twitter
Now playing
01:30
University creates student avatars for virtual graduation ceremony
India
India's richest man and oil-to-telecom conglomerate Reliance Industries chairman Mukesh Ambani (R) attends the India Mobile Congress 2018 in New Delhi on October 25, 2018. - The second edition of the India Mobile Congress is taking place in New Delhi from 25-27 October. (Photo by CHANDAN KHANNA / AFP) (Photo credit should read CHANDAN KHANNA/AFP via Getty Images)
PHOTO: CHANDAN KHANNA/AFP/AFP via Getty Images
Now playing
01:43
Asia's richest man wants to build the next tech giant
PHOTO: VIVIEN KILLILEA/GETTY IMAGES FOR BUMBLE/CNN
Now playing
02:57
Online dating isn't the norm in India. Bumble wants to change that
Traffic stretches back in Hero Honda chowk as waterlogging during monsoon downpours causes traffic jams in Gurgaon on July 29, 2016. 
Thousands of Indians were left stranded overnight July 29, as major traffic gridlock paralysed roads leading to a key business city near New Delhi and authorities struggled to get the situation under control. / AFP / STRINGER        (Photo credit should read STRINGER/AFP via Getty Images)
Traffic stretches back in Hero Honda chowk as waterlogging during monsoon downpours causes traffic jams in Gurgaon on July 29, 2016. Thousands of Indians were left stranded overnight July 29, as major traffic gridlock paralysed roads leading to a key business city near New Delhi and authorities struggled to get the situation under control. / AFP / STRINGER (Photo credit should read STRINGER/AFP via Getty Images)
PHOTO: STRINGER/AFP/AFP via Getty Images
Now playing
03:33
How Big Tech plans to clean up the world's most polluted city
PHOTO: CNN
Now playing
02:22
She's helping bring electricity to millions in India
PHOTO: SAURABH DAS FOR CNN
Now playing
02:35
He wants to bring a billion people to digital payments
india coffee vg siddhartha found dead kumar first move_00000709.jpg
india coffee vg siddhartha found dead kumar first move_00000709.jpg
PHOTO: Hindustan Times/Getty Images
Now playing
01:17
Indian coffee tycoon V.G. Siddhartha found dead
PHOTO: CNN
Now playing
03:04
Indian Oil's Singh: More oil suppliers is better for trade
In this photograph taken on April 6, 2015, smoke billows from two smoke stacks at the coal-based Badarpur Thermal Station in New Delhi. A study by the Centre of Science and Environment in India found the plant which produces 705 MW (Megawatts) is one of the country
In this photograph taken on April 6, 2015, smoke billows from two smoke stacks at the coal-based Badarpur Thermal Station in New Delhi. A study by the Centre of Science and Environment in India found the plant which produces 705 MW (Megawatts) is one of the country's most polluting and inefficient power plants. Authorities insist they must focus on meeting the growing needs of its 1.25 billion people, 300 million of whom lack access to electricity. In its action plan for the Paris COP21 meet, India pledges to reduce its carbon intensity -- a measure of a country's emissions relative to its economic output -- by 35 percent by 2030, rather than an absolute cut in emissions. Globally, India is the third largest carbon-emitting country -- though its per capita emissions are only one third of the international average -- according to the World Resources Institute. AFP PHOTO / MONEY SHARMA
PHOTO: MONEY SHARMA/AFP/AFP/Getty Images
Now playing
02:55
Quitting coal is India's energy challenge
Water pours down an irrigation channel from a groundwater pump and well next to a field of rice growing on farmland in the Bhagpat district of Uttar Pradesh, India, on Monday, Sept. 3, 2018. Cumulative rainfall during August and September is forecast to be 95 percent of a 50-year average, according to the India Meteorological Department. The monsoon is critical to the farm sector as it accounts for more than 70 percent of India
Water pours down an irrigation channel from a groundwater pump and well next to a field of rice growing on farmland in the Bhagpat district of Uttar Pradesh, India, on Monday, Sept. 3, 2018. Cumulative rainfall during August and September is forecast to be 95 percent of a 50-year average, according to the India Meteorological Department. The monsoon is critical to the farm sector as it accounts for more than 70 percent of India's annual showers and irrigates more than half the country's farmland. Photographer: Prashanth Vishwanathan/Bloomberg via Getty Images
PHOTO: Prashanth Vishwanathan/Bloomberg/Getty Images
Now playing
02:16
Farmers are using the sun to help water their crops
Indian flags on display in Delhi ahead of independence day celebrations
Indian flags on display in Delhi ahead of independence day celebrations
PHOTO: Omar Khan
Now playing
01:27
India escalates trade fight with US, adds new tariffs
Now playing
03:26
PepsiCo sues Indian farmers over 'exclusive' potatoes
PHOTO: CNN
Now playing
04:19
Why Big Tech is racing to bring the internet to India (2018)
Interview with Amitabh Kant, CEO, National Institution for Transforming India
Interview with Amitabh Kant, CEO, National Institution for Transforming India
PHOTO: TALREJA, SANJIV/CNN
Now playing
02:30
India's path to double-digit growth
Photo taken on Feb. 7, 2018 shows an electric car exhibited by Indian automaker Mahindra & Mahindra Ltd. in Greater Noida, India. (Kyodo)
==Kyodo
(Photo by Kyodo News via Getty Images)
Photo taken on Feb. 7, 2018 shows an electric car exhibited by Indian automaker Mahindra & Mahindra Ltd. in Greater Noida, India. (Kyodo) ==Kyodo (Photo by Kyodo News via Getty Images)
PHOTO: Kyodo News/Kyodo News Stills/Kyodo News via Getty Images
Now playing
01:25
The company driving India's electric car revolution
(CNN Business) —  

Amazon and Walmart have spent months fighting to be the leader of India’s large online retail market. They’re now entering a race to eliminate single-use plastic packaging.

Plastic pollution is a huge problem in India. The government estimates that about 70% of the plastic the country consumes is simply discarded and there is no processing of waste in most Indian cities.

Amazon (AMZN) announced Wednesday that it will remove all non-recyclable plastic from its deliveries in India by June 2020, replacing the “air pillows” and bubble wrap it uses to protect products with padding made out of paper.

The company’s packaging material already contains less than 7% single-use plastic, according to Akhil Saxena, Amazon India’s vice president of customer fulfillment.

“This investment in protecting the environment ensures a triple win — it is good for our planet, good for our customers and community, and good for the business,” Saxena said in a statement.

The announcement comes less than a week after Walmart (WMT)-owned Flipkart, India’s biggest e-commerce company, unveiled a similar initiative. Flipkart — which said it reduced the amount of single-use plastic in each package by 25% in the past year — has set itself a deadline of March 2021 to make all its packaging recyclable. Walmart (WMT) bought Flipkart last year.

Flipkart holds a slender lead over Amazon at the top of India’s e-commerce market, which Morgan Stanley predicts will be worth $200 billion by 2027. Each company accounts for a little over 30% of the market, according to estimates from the research firm Forrester. Both have invested billions of dollars to grow their business as they battle to reach more than half a billion people set to come online over the next few years.

India’s Prime Minister Narendra Modi last month called on companies and individuals to reduce plastic pollution, saying in his Independence Day speech that India should take “strong first steps” to eliminate single-use plastic by October 2.

“I urge the startup founders, technicians and industrialists to find ways to recycle plastic,” Modi added.