Govt rejects Flipkart's proposal for entry into food retail business

The government permits 100 per cent foreign direct investment in food retail for food produced and manufactured in India

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

The government permits 100 per cent foreign direct investment in food retail for items produced and manufactured in India. The grocery segment accounts for a significant portion of the unorganised retail segment in the country. Estimates suggest the market is worth over $200 billion in India.

Last year, the company had set up a new local entity - Flipkart Farmermart - to focus on food retail in India and