Government Rejects Flipkart's Plan to Enter Food Retail Business in India: Report - lloydcrent1997

In what could glucinium a major setback for Flipkart, the Indian government has rejected the home-grown e-tailer's proposal to enter the food retail business in the body politic. According to sources quoted by CNBC TV-18, the Department for Promotion of Industry and Internal Trade (DPIIT) sent a alphabetic character to the companionship last week, stating that its application for a food retail license had been rejected.

Flipkart had in the first place declared plans to get into India's solid food retail business last year as persona of its strategy to diversify to more sectors of the e-commerce scene in the country. The companionship even out registered an entity called 'Flipkart Farmermart Pvt Ltd' that the company's CEO, Kalyan Krishnamurthy, described equally "an important part of our efforts to boost Indian agriculture every bit well as food processing industry in the country". Boilersuit, the companion is said to have been looking to endu Rs. 2,500 crore into the food retail business in the country.

According to sources, the license was unloved because Flipkart's practical application did not fit into the ongoing FDI guidelines. However, Virago had received a food retail license in 2022 afterwards the government gave the jet signal to 100 percent FDI in solid food retail. Meanwhile, the report claims that Flipkart plans rhenium-apply for a licence, but there's no farther info thereon front just yet.

In a press statement, a Flipkart spokesperson claimed that the fellowship's proposed investments in the food sphere would add meaningful value for farmers and other stakeholders. According to him: "At Flipkart, we believe that technology and innovation driven marketplace can bring significant economic value to our res publica's farmers and food processing sector by delivery value chain efficiency and transparency. This will further aid in boosting farmers' income and transform Indian agriculture. We are evaluating the section's response and intend to re-apply as we look for continue making a probative encroachment on small businesses and communities in India".