NEW DELHI – The Indian government has approved Amazon’s $500-million investment proposal for food retail in India.
The Department of Industrial Policy and Promotion (DIPP) has given the nod to the Seattle-based e-commerce giant for its food retail business here, since the Foreign Investment Promotion Board (FIPB) has been abolished. DIPP has also approved similar proposals by online grocers BigBasket and Grofers. In total, the government had received a $695-million investment proposal for food retail in India.
An Amazon spokesperson confirmed the development, saying, “Yes, we have received the government approval for food retail based on our application for the same.”
Grofers too confirmed the development to TOI. To benefit farmers and reduce wastage of fruits and vegetables, the government last year allowed 100% FDI in domestically manufactured and produced food products. Executives of above mentioned companies had told TOI recently that a final approval from the government will see more investment in the farming sector from these players.
Food processing minister Harsimrat Kaur had said that after allowing 100% FDI in food retail in India, the government had received strong interest from several companies.
The $500-million investment is on top of the commitment of the $5 billion for India.
