Amazon seeks govt nod for e-retail of food products in India

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.

Representational image. AP

Representational image. AP

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.

Updated Date: Feb 03, 2017 19:00 PM

Also Watch

Social Media Star: Abhishek Bachchan, Varun Grover reveal how they handle selfies, trolls and broccoli
  • Monday, July 16, 2018 It's a Wrap: Soorma star Diljit Dosanjh and Hockey legend Sandeep Singh in conversation with Parul Sharma
  • Monday, July 16, 2018 Watch: Dalit man in Uttar Pradesh defies decades of prejudice by taking out baraat in Thakur-dominated Nizampur village
  • Monday, July 16, 2018 India's water crisis: After govt apathy, Odisha farmer carves out 3-km canal from hills to tackle scarcity in village
  • Sunday, July 15, 2018 Maurizio Sarri, named as new Chelsea manager, is owner Roman Abramovich's latest gamble in quest for 'perfect football'

Also See