[abhaga]

As per my understanding, two things drive the prices in the market. One is the perceived value the thing provides to users. This is the primary factor is the cost of producing the good is much lower when compared to perceived value. If the cost of production is high, there is usually a cost+ pricing.

One way competition reduces prices when sellers start undercutting each other in the first case. That doesn't apply to books in India. No one is making astronomical margins on books which can be cut down.

The other reason prices reduce is when competition leads to reducing production cost. It can be because of expanding market, technological improvements, improving supply chains.

Amazon may be able to make some difference in establishing better supply chains. But beyond that I do not see how they can help reduce the book prices in India. There has already been enough bloodbath in the online book retailing in India, so lack of competition is hardly an issue.