Ama­zon, Two Oth­ers Get Nod for FDI in Food Re­tail

The Economic Times - - Economy: Macro, Micro & More - Our Bu­reau

New Delhi: The gov­ern­ment has ap­proved three for­eign di­rect in­vest­ment (FDI) pro­pos­als in food re­tail, in­clud­ing that of ecom­merce ma­jor Ama­zon, com­merce and in­dus­try min­is­ter Nir­mala Sithara­man told Par­lia­ment on Wed­nes­day.

In a writ­ten re­ply to Ra­jya Sabha the min­is­ter in­formed that FDI pro­pos­als of Ama­zon Re­tail, and on­line gro­cery ser­vice providers Gro­fers and Supermarket Groceries Sup­plies have THINKSTOCK been ap­proved by the Depart­ment of In­dus­trial Pol­icy and Pro­mo­tion (DIPP).

The to­tal pro­posed in­vest­ment is more than .₹ 3,750 crore, led by Ama­zon that plans to in­vest .₹ 3,500 crore. Supermarket Gro­cery Sup­plies has pro­posed for­eign in­vest­ments of .₹ 105 crore while Gro­fers has sought to bring in $25 mil­lion, or about .₹ 160 crore, in FDI.

Sithara­man also told Par­lia­ment that no de­ci­sion has been taken to al­low the sale of lo­cally man­u­fac­tured per­sonal care items by for­eign re­tail­ers along­side food items. The gov­ern­ment has al­lowed 100% FDI in food re­tail, mak­ing way for com­pa­nies such as Ama­zon to sell lo­cally man­u­fac­tured food items both on on­line and off­line plat­forms.

All such pro­pos­als are sub­ject to gov­ern­ment ap­proval.

Af­ter the abo­li­tion of the For­eign In­vest­ment Pro­mo­tion Board (FIPB), such pro­pos­als are be­ing dealt with by the con­cerned min­istry with DIPP act­ing as the nodal depart­ment.

Pro­posal to al­low 100% FDI in re­tail for In­dia man­u­fac­tured goods and sale of per­sonal care items by food re­tail­ers up to 25% of to­tal re­ceipts is be­ing con­sid­ered by the gov­ern­ment.

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