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Centre turns down Flipkart's proposal for entry into food retail business

Monday, 01 Jun 2020
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The Department for Promotion of Industry and Internal Trade (DPIIT) rejected Walmart-backed Flipkart's proposal seeking approval for entry into the food retail sector citing a regulatory issue.

The government permits 100 percent foreign direct investment (FDI) in food retail for items produced and manufactured in India.

In 2019, the company had set up a new local entity -- Flipkart Farmermart -- to focus on food retail in India and had applied for requisite licences from the government.

Amazon had received the government's nod for its USD 500 million investment proposal for retailing of food products in India in 2017.

 
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