Government green lights Amazon’s proposal for FDI in food retail

  • Before, the foreign direct investment proposals were approved by the Foreign Investment Promotions Board, which is now abolished and now it is approved by the commerce and industry ministry.
  • Currently, the government has allowed 100% FDI in the food processing sector which means any foreign company can open its wholly owned subsidiary and retail food products produced or manufactured in the country.
  • The government had received proposals worth USD 695 million in the retail of food products from three giants – Amazon, Grofers, and BigBasket.
  • The government has approved Amazon’s USD 500 million proposals for retailing of food products online in India, while Grofers and BigBasket are already into online grocery space.
  • Amazon will be opening its wholly owned subsidiary in India to stock food products and sell it online.
Source: http://bit.ly/2veV8uU

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