Food Processing Minister Harsimrat Kaur Badal stated that the government will soon clear Amazon’s proposed $500 million investment in food retail in India, as per a latest PTI report. The proposal was pending before the foreign investment promotion board (FIPB) which has been abolished now.
“There was some delay due to abolition of FIPB. It (Amazon’s proposal) will soon be cleared,” Badal told PTI. With the abolition of the Foreign Investment Promotion Board (FIPB), the Amazon’s proposal will now be vetted by the Department of Industrial Policy and Promotion (DIPP) under the Commerce Ministry.
Badal said that more investment in food processing sector is the need of the hour to reduce the huge wastage during post harvesting and transportation. She further added that foreign investment will bring new technologies, products, processes and markets.
The government had received investment proposals from three companies – Amazon, Grofers and Big Basket – worth USD 695 million for retail of food products. While US-based retail giant Amazon is one of the major e-commerce players in India, Grofers and Big Basket are into online grocery space.
Last year, the government allowed 100 per cent foreign direct investment (FDI) through approval route for trading, including through e-commerce, in respect of food products manufactured and produced in India.
In 2016-17 (April-December), the food processing sector in the country received FDI of USD 663.23 million. Under the new mechanism, the proposals will be approved by the ministries concerned as per the standard operating procedure approved by the Union Cabinet.