NEW DELHI: Amazon, Grofers and Big Basket are all set to invest upwards of $500 million in India to push the e-retail of food products. These firms have submitted proposals to enter retail trading of food products. Meanwhile, the Metro Cash & Carry is evaluating business opportunities in food retailing, food processing minister Harsimrat Kaur Badal said. While Amazon is one of the major e-commerce players in India, Grofers and Big Basket are leading online grocery firms.
India allowed 100 per cent
foreign direct investment (FDI) in trading of food products last year for marketing, including through e-commerce, of food products manufactured and produced in India.
“We are excited about the opening of FDI in food retailing. We have submitted an application for approvals,” Amazon’s director for public policy
Avinash Ramachandra said.
Speaking to reporters on Thursday, Badal said, “We have got some good news. Amazon has now decided to get into e-retail of food. Amazon has decided to invest close to $500 million in the food retail sector,” Badal told reporters on Thursday. The food processing sector received $5.76 billion in FDI equity inflows from 2010-11 to 2015-16. In 2016-17 (April-December), the food processing sector in the country received $663.23 million worth of FDI equity inflows.
The government’s new FDI policy is very ‘attractive’ and is generating huge interest among investors, she added. Badal
is confident that the e-retail market in India is growing at a fast pace and is set to treble by 2020. She termed the food processing as a sunrise sector, which is growing at 7 per cent.
The government is setting up mega food parks, cold chain projects and plans to establish a ‘national food grid’ to boost the processing level of farm produce and reduce wastages by compressing gaps in supply chain.
Commenting on the government’s delay in its decision to allow non-food products in the FDI policy, Badal said the government will take a decision soon.