Amazon just received approval from the government of India to sell food products via actual stores in the region. For the next five years, Amazon will spend $15 million on this venture.
This could just be the start of grocery store investment and expansion in India. Big Basket and Grofers (online grocery stores in India) are looking for similar approval to set up food outlets.
In June of 2016, 100% of FDI was allowed in India in multi-brand food retail. With this, however, all food products must have some connection to the country: manufactured, processed or produced in India. But with Amazon, this is the first FDI case to have received an “in-principle clearance” after the closure of the Foreign Investment Promotion Board.
What is also good for India investments is the interest in this industry being shown by brands throughout the world. To date, more than 40 major brands have come into India since 2015.
