Government shown way to Amazon's FDI in food retail
16th June 2017Category : E-CommercePublished by :Rahul Verma Reading Time : 3 Minute News Sourced : India
The announcement by Food Processing Minister Harsimrat Kaur Badal cleared Amazon's proposed USD 500 million investment in retail of food products in India.
"There was some delay due to abolition of FIPB. It (Amazon's proposal) will soon be cleared," Badal, as reported TOI.
With the abolition of the Foreign Investment Promotion Board (FIPB), the Amazon's proposal will now be vetted by the Department of Industrial Policy and Promotion (DIPP) under the Commerce Ministry.
Badal pointed out that more investment in food processing sector is the need of the hour to reduce the huge wastage during post harvesting and transportation.
The largest producer of vegetables and fruits, the processing level is in India is 10 per cent, she said, adding that foreign investment will bring new technologies, products, processes and markets.
According to reports, government had received investment proposals from three companies - Amazon, Grofers and Big Basket in online grocery retailing. Amazon has desired to invest around USD 695 million for retail of food products.
Earlier, government has allowed 100 per cent foreign direct investment (FDI) through sanctioned route for trading, including through e-commerce, in respect of food products manufactured and produced in India.