Amazon, Two Others Get Nod for FDI in Food Retail
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.