The government has provided its approval to the American e-commerce major Amazon‘s proposal of USD 500 million investment in retailing of food products in India.

The Department of Industrial Policy and Promotion (DIPP) gives the green signal to the proposal.

The company, as per the proposal, will be opening a wholly owned subsidiary in India to carry out the business. It will stock food products and sell online.

At present, the government allows 100 percent foreign direct investment (FDI) in the food processing sector. According to the norms, a foreign company can open a wholly-owned subsidiary in India for retailing food products produced and or manufactured in the country by way of opening stores or online.

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