Amazon India to invest $515 m in food e-retail

Amazon India on Thursday proposed to invest over $500 million for e-retail of food products in India over a period of five years.

According to Union Minister for Food Processing Harsimrat Kaur Badal, Amazon has now decided to get into e-retail of food. “Amazon has decided to invest close to $515 million in the food retail sector. It is good news for the country,” said Harsimrat.

The government last year allowed 100% FDI for marketing, including through ecommerce, of food products manufactured and produced in India. Amazon had filed its application with the Department of



Industrial Policy and Promotion (DIPP) to enter food retailing.In a statement issued to DH, the company stated that it is excited by the government’s continued efforts to encourage FDI in India for a stronger food supply chain. “We have sought an approval to invest and partner with the government in achieving this vision,” the statement said.

Amazon India has been putting concerted efforts to get the pole position in the Indian ecommerce space which is valued at Rs 30 lakh crore, and the food aspect constitutes Rs 4 lakh crore. The ecommerce market, growing at a fast pace, is set to treble by 2020.