Latest News – In a move that is expected to attract top dollar, the government on Monday allowed Seattle-headquartered online giant Amazon to open fully-owned brick-and- mortar stores to sell food products in India. This is the first foreign direct investment (FDI) proposal for setting up “food-only” retail outlets that the government has permitted. It also happens to be the first FDI case to get an in-principle clearance after the Foreign Investment Promotion Board (FIPB) was shut down recently.
In its January application to the Department of Industrial Policy & Promotion (DIPP), the American major had proposed to invest $515 million in food retail over the next five years. Indian online grocery stores Grofers and Big Basket may be the next to get a go-ahead for setting up food outlets, making it a total of $695 million for the three players.
“After much discussion, we have decided to give an approval to Amazon’s investment proposal,” said a senior DIPP official. An Amazon India spokesperson confirmed that the company had received government approval for food retail.
In June last year, the government allowed 100 per cent FDI in (Read More)