New Delhi: Global e-commerce giant Amazon has sought government's approval for online retailing of food products produced and manufactured in India.
The US-based company has proposed to invest about Rs 3,400 crore for the purpose, sources said, adding the application is being considered by the Commerce and Industry Ministry.
As per the proposal, the company will open a wholly-owned subsidiary in India to carry out the business. It will stock food products and sell online.
When contacted, the company said in a statement: "We are excited by the government's continued efforts to encourage FDI in India for a stronger food supply chain. We have sought an approval to invest and partner with the government in achieving this vision."
It, however, declined to comment on the investment details.
Currently, the government permits 100 percent FDI in the food processing sector. As per norms, a foreign company can open a wholly-owned subsidiary in India to retail food products produced and or manufactured in the country by way of opening stores or online.
Amazon currently operates an e-commerce marketplace in India and competes with the likes of Flipkart and Snapdeal. Though the regulations allow 100 percent overseas capital in such platforms, these entities cannot sell products themselves.
Amazon has been bullish on India, introducing new features for customers and sellers, even as the region continues to weigh heavy on the US-based company's finances.
It has also been aggressively investing in areas like marketing and promotions and expanding infrastructure in India.
Betting big on the burgeoning e-commerce market in India, its chief Jeff Bezos had said the company will invest $3 billion in India, taking its total investment committed here to over $5 billion.
Published Date: Feb 03, 2017 07:00 pm | Updated Date: Feb 03, 2017 07:00 pm