Govt. will soon clear the way for Amazon’s FDI in food retail: Badal
While addressing an event, Harsimrat Kaur Badal, Minister, Food Processing Ministry unveiled that government of India will soon clear the way for Amazon’s FDI in food retail. US retail giant had proposed earlier that it is keen to invest around US $500 in retail of food products in India. Badal’s recent announcement came as a breather to Amazon.
She told, “There was some delay due to abolition of FIPB. It(Amazon’s proposal) will soon be cleared.” With the abolition of the Foreign Investment Promotion Board (FIPB), Amazon’s proposal will now be vetted by the Department of Industrial Policy and Promotion (DIPP) under the Commerce Ministry.
Badal said that more investment in food processing sector is the need of the hour to reduce the huge wastage during post harvesting and transportation. Despite India being the world’s largest producer of vegetables and fruits, the processing level is very low at 10 per cent, she said, adding that foreign investment will bring new technologies, products, processes and markets.
Earlier, three companies Amazon, Grofers and Bigbasket showed their acute interest for retail of food products. Together, these three ventures had made a proposal of worth US $695 million. While US-based retail giant Amazon is one of the major e-commerce players in India, Grofers and Big Basket are into online grocery segment. Amazon has proposed to invest around $500 million in retail of food products.
The government last year allowed 100% foreign direct investment (FDI) through approval route for trading, including through e-commerce, in respect of food products manufactured and produced in India. In 2016-17 (April-December), the food processing sector in the country received FDI of $663.23 million.
