Amazon Applies For The Government’s Permission To Set Up Online Food Venture In India

Seattle based e-commerce Amazon has asked the Indian government for the go ahead to invest $500 million in a wholly owned venture in India. This comes after the government announced that it would approve 100%  foreign direct investment in the processed food sector in the 2016 budget.

Amazon To Sell Locally Produced Food

Amazon has filed the application for permission with the Ministry of Commerce and Industry (DIPP). It has revealed it is looking to invest $5 million over five years.

Should the application be approved, it will start selling locally produced foods. Confirming the application, an Amazon spokesperson said  “We have sought an approval to invest and partner with the government in achieving this vision.”

Amazon Applies For The Government’s Permission To Set Up Online Food Venture In India

Over the past year, the government has been inviting large corporations like Walmart and Marks & Spencer’s to look into investing in India. In September last year, India’s Minister for Food Processing Harsimrat Kaur Badal travelled to the UK to meet and attract investors.
However, since the government announced that it would allow 100% foreign investment, Amazon is the first company to enter an application.