Much has been said about Amazon’s bid to get into the food market with the grocery world going into a tizzy with their latest Whole Foods acquisition. However, it seems that they seem to be on the right track with the Government of India approving their massive $500 million investment in retailing food products in the sub-continent.
Previously, this request had been pending before the Foreign Investment Promotion Board. However, since that has been abolished the Department of Industrial Policy and Promotion gave the go-ahead to the proposal so it looks as if it’s good to go!
According to The Hindu, an Amazon spokesperson said: “Yes, we have received the government approval for food retail based on our application for the same.”
Presently, the government permits 100 percent foreign direct investment (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.
So, anyone that’s looking forward to Amazon entering the food market in a big way (Prime users, we’re looking at you) should get excited. On the other hand, we do feel for BigBasket, Grofers, and other food retail companies – you’ve definitely got your work cut out!