Amazon’s wait is over now as the government has approved its ₹3,250 crore investment proposal for food retail in India. The Department of Industrial Policy and Promotion(DIPP) has given nod to the e-commerce giant for its food retail business since the Foreign Investment Promotion Board(FIPB) has been abolished. Apart, DIPP has also approved similar proposals by online grocers BigBasket and Grofers. By allowing them to invest in the food retail in India, the government has attracted approx. ₹4,550 crore in total.
An Amazon spokesperson confirmed the development and said, “Yes, we have received the government approval for food retail based on our application for the same”. Grofers too confirmed the development. While according to the top executive of these firms, they will invest more in the farming sector after government’s final approval.
To benefit farmers and reduce wastage of fruits and vegetables, the government last year allowed 100% FDI in domestically manufactured and produced food products. After government’s approval on 100% FDI in food retail, several companies have shown strong interest for the investment.