Last year, govt allowed 100% FDI in multi-brand food retail
Global e-commerce major Amazon is aiming to enter the food retailing sector in India with investment plans of $515 million over the next 5 years.
Food Processing Industries Minister Harsimrat Kaur Badal on Thursday confirmed the company’s investment plans while adding that Metro Cash & Carry has also shown interest in food retailing.
Back in January, Amazon had filed its application with the Department of Industrial Policy and Promotion (DIPP). Online players Grofers and Big Basket also have also submitted FDI proposals regarding retail trading of food items.
While Amazon is one of the major e-commerce players in India, Grofers and Big Basket are into online grocery space.
Last year, in June, the government allowed 100 per cent FDI in multi-brand food retail, including through e-commerce. However, the food products have to be produced, processed or manufactured in the country.
However, while the move has drawn little interest from international retail players so far who have complained that just having “food only” stores was not a viable option.
Multinationals including Walmart and French retailing major Auchan Group have indicated their interest in investing in the country if the government allows “food plus” in foreign direct investment (FDI) in retail, official sources said. Read More