Amazon, Grofers and Big Basket have submitted FDI proposals to the government for undertaking retail trading of food products, Parliament was informed today. The government had last year allowed 100 per cent foreign direct investment (FDI) for trading, including through ecommerce, in respect of food products manufactured and produced in India.
“Government has been interacting with investors to identify issues for promoting FDI in the food processing sector. Several issues, including sale of home and personal care product have been raised by investors.Amazon Corporate Holdings Pvt Ltd, Grofers India Pvt Ltd and Supermarket Grocery Supplies Pvt Ltd (Big Basket) have submitted foreign investment proposals for approval of the government for undertaking retail trading of food products in India,” Minister of State for Food Processing Sadhvi Niranjan Jyoti said in a written reply to Lok Sabha.
While Amazon is one of the major ecommerce players in India, Grofers and Big Basket are into online grocery space. The food processing sector received USD 5.76 billion in FDI equity inflows from 2010-11 to 2015-16, Jyoti said.
“In 2016-17 (April-December), the food processing sector in the country has received USD 663.23 million worth of FDI equity inflows,” she said.
In reply to a separate query, Jyoti said the policy of encouraging FDI in food processing benefits all segments of domestic industries as well as farmers. FDI inflows help bring new technologies, products, processes and markets, she said, adding that investments in backward and farm-gate infrastructure in the supply chain benefit farmers and processors, creating employment.
Source: India Today