Multinational Commerce Company amazon has proposed investments worth $500 million in food retailing in India, which are likely to get the official nod from the Government.
The Proposal had been pending before the Foreign Investment Promotion Board (FIPB) for approval earlier. However, the board has now been abolished which will speed up the company’s investment plan.
Amazon’s proposed $500 million investment in food retail is likely to get a green signal from the Department of Industrial Policy and Promotion (DIPP), and does not have to wait for further clearance from the Foreign Investment Promotion Board.
The Union Cabinet decided to wind up the 25-year old FIPB, which had been functioning under the Ministry of Finance to allow easing of investment norms, simplifying the clearance process and expedite foreign investments.
Last year, the food processing sector received FDI worth $663.23 million. In the same year, the government took substantive steps to allow 100 percent FDI in trading and e-commerce in respect of food products manufactured and produced in India.
Three major companies, Amazon, Grofers and Big Basket had sent proposals with a combined net value worth $695 million to the Government in the food retail space last year, which are now awaiting the government’s sanction.
Union Minister for Food Processing, Harsimrat Kaur Badal said FDI inflows would bring new technologies, products, processes and markets and would create employment with investments in backward and farm-gate infrastructure in the supply chain benefiting farmers and processors.