Wednesday, Apr 24, 2024 | Last Update : 08:01 AM IST
Amazon to invest $500m in food business
Grofers, Big Basket have also submitted FDI proposals for undertaking retail trading.
New Delhi: US based e-commerce giant Amazon has proposed to invest around $500 million for e-retail of food products in India, food processing minister Harsimrat Kaur Badal said on Thursday.
Last year Modi government had allowed 100 per cent foreign direct investment for marketing, including through e-commerce, of food products manufactured and produced in India.
“We allowed 100 per cent FDI in trading of food products last year. We have got some good news. Amazon has now decided to get into e-retail of food. Amazon has decided to invest close to $500 million in the food retail sector. It is a good news for the country,” said Ms Badal.
E-retail market is growing at a fast pace and is set to treble by 2020, the minister said.
She said Grofers and Big Basket have also submitted FDI proposals for undertaking retail trading of food products. Metro Cash & Carry too has shown interest in food retailing
On allowing non-food products also be sold along with food products in the FDI policy, minister said the government will take a decision on this issue soon.
Some foreign retailers have demanded that India should allow sale of home and personal care products. Ms Badal said the government’s new FDI policy is very “attractive” and is generating huge interest among investors.
“We are excited about the opening of FDI in food retailing. We have submitted an application for approvals," Amazon’s director, public policy Avinash Ramachandra said.
While the BJP government is against FDI in multi-brand retail, it has allowed it in processed food retail to increase processed food production in the
organised sector in the country.
It is in line with Modi government vision to double farmers income by 2022 by boosting farming and allied activities.
Though FDI in multi-brand retail was allowed in India during UPA II regime, BJP government is against it so no foreign investor has applied for it since the Modi government has come to power.
The food processing sector received $5.76 billion in FDI equity inflows from 2010-11 to 2015-16. In 2016-17 (April-December), the food processing sector in the country has received $663.23 million worth of FDI equity inflows.
