Amazon’s food retail gets approval by government.

Government of Monday approved the Amazon’s investment of $500 million on its food retail industry.
“Yes, we have received the government approval for food retail based on our application for the same,” An Amazon spokesperson confirmed.

In total, the government had received a $695-million investment proposal for food retail in India. Since the Foreign Investment Promotion Board (FIPB) has been abolished. DIPP has also approved similar proposals by online grocers BigBasket and Grofers. The Department of Industrial Policy and Promotion (DIPP) has given the nod to the Seattle-based e-commerce giant for its food retail business here.

Food processing minister Harsimrat Kaur had said that after allowing 100% FDI in food retail in India, the government had received strong interest from several companies. Grofers too confirmed the development to benefit farmers and reduce wastage of fruits and vegetables, the government last year allowed 100% FDI in domestically manufactured and produced food products. A final approval from the government will see more investment in the farming sector from these players. Said by a executives of the companies.

The Union Cabinet last month decided to wind up the 25-year-old FIPB, which had been vetting FDI proposals requiring government approval, to expedite the clearance process. Under the new mechanism, proposals related to retail sector is being approved by the commerce and industry ministry, 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.

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