The government approved 10 foreign direct investment proposals likely worth about Rs. 5,000 crore for food product and single brand retail trading, including those of Amazon, Grofers and Urban Ladder. Amazon got the go ahead to set up a subsidiary company in India with 100 per cent FDI “to engage in the business of retail trading of food products manufactured or produced locally”. Its proposal is to invest Rs 3,500 crore. Grofers’ proposal “to undertake retail trading, including through e-commerce, of food products manufactured or produced in India with 100 per cent FDI” has also been approved. The cleared proposals also include MTR Foods. Grofers is likely to bring in $25 million (Rs 160 crore) while Supermarket Grocery is investing Rs 105 crore and subsequently bringing in Rs 800-1,000 crore in the next 18 months. According to information given in the Lok Sabha by commerce and industry minister Nirmala Sitharaman this month, 99 FDI proposals were pending with the government of which 48 were awaiting approval in the DIPP.
(Source: ET Bureau, August 25, 2017)