Amazon, two others get nod for FDI in food retail

NEW DELHI: The government has approved three foreign direct investment proposals in food retail, including that of ecommerce major Amazon, commerce and industry minister Nirmala Sitharaman told Parliament on Wednesday.

In a written reply to Rajya Sabha the minister informed that FDI proposals of Amazon Retail, and online grocery service providers Grofers and Supermarket Groceries Supplies have been approved by the department of industrial policy and promotion (DIPP).

The total proposed investment is more than Rs 3,750 crore, led by Amazon that plans to invest Rs 3,500 crore. Supermarket Grocery Supplies has proposed foreign investments of Rs 105 crore while Grofers has sought to bring in $25 million, or about Rs 160 crore, in FDI.


Sitharaman also told Parliament that no decision has been taken to allow the sale of locally manufactured personal care items by foreign retailers alongside food items.

The government has allowed 100% FDI in food retail, making way for companies such as Amazon to sell locally manufactured food items both on online and offline platforms. All such proposals are subject to government approval.