Amazon seeks govt permission to set up food e-retail venture in India; spend $500 million

New Delhi: Online retail giant Amazon has sought government nod to set up food e-retail venture in India, as per a report in a financial daily.
A report in the Economic Times said that Amazon has “applied to the government to invest $500 million in a wholly-owned venture in India” which will allow it “stock locally produced food items and sell them online”.
Should Amazon recieve government’s permission, it will become the first foreign retailer to enter the segment, the ET said.
“We are 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,” an Amazon spokesperson told ET.
Quoting a source, ET said that Amazon has filed its application with the Department of Industrial Policy and Promotion (DIPP).
“Amazon plans to invest $500 million over five years and could start selling locally-produced food items within six months of obtaining approval,” ET quoting the source said.