Amazon wants to sell groceries directly in India to boost sales: Report

By: | Published: March 9, 2017 4:18 PM

Amazon.com wants to stock and sell groceries online directly to consumers in India, two senior government officials said, the latest move in its quest to boost sales.

PM Narendra Modi’s government in Budget 2016 allowed 100 per cent foreign investment in retailing of processed foods made in India and Amazon’s application comes after this.

Amazon.com wants to stock and sell groceries online directly to consumers in India, two senior government officials said, the latest move in its quest to boost sales, Reuters said quoting Wall Street Journal. The e-commerce company recently sought approval from the government to invest $500 million in the new venture. PM Narendra Modi’s government in Budget 2016 allowed 100 per cent foreign investment in retailing of processed foods made in India and Amazon’s application comes after this. Amazon Fresh, a subscription service in the US and the UK provides quick food delivery for online orders. The push to sell food directly to consumers in India could resemble this model only.

Amazon is making a huge bet on India and has vowed to invest more than $5 billion as it takes on home-grown Flipkart and Snapdeal for a bigger share of the world’s fastest growing internet services market. In an event attended by Indian premier Narendra Modi in Washington last year, Amazon Chief Executive Jeff Bezos said India was the company’s fastest-growing region.

Recently Amazon Canada got into a controversy when it was selling doormats depicting Indian flag and slippers with Mahatma Gandhi’s face printed on it. Taking strong exception to this, External Affairs Minister Sushma Swaraj asked the e-retailer to withdraw the products and tender an unconditional apology, failing which no official of Amazon will be granted Indian visa and the ones issued earlier will also be rescinded.

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Following her sharp rebuke, Amazon India’s vice president and country manager Amit Agarwal wrote to Swaraj expressing “regret at hurting Indian sensibilities”.

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