A govt rule is delaying Amazon's plans to launch online food business

Amazon can sell food and groceries on both offline and online platforms in India

Amazon is the first global company to get government's approval to sell food made and packaged in India directly to consumers. However, the firm's plan to launch the business segment during Diwali failed to take off as the government has asked it to keep the food and the marketplace businesses completely separate from each other with different offices, inventories, and accounting systems. 

In India, foreign retailers are not allowed to sell any non-food items directly to consumers. Hence, food is the only segment where Amazon is allowed to sell directly to consumers. The company can sell food and groceries on