Govt rejects Flipkart’s foray into food retail business

The Indian government on Monday rejected Walmart-owned Flipkart’s proposal to venture into the food retail business citing regulatory hurdles.

As per a TechCrunch report, the Department for Promotion of Industry and Internal Trade (DPIIT), which is a part of the Ministry of Commerce and Industry, told the e-retailer that its proposed plan to enter the food retail business does not comply with the country’s regulatory guidelines. The department, however, did not elaborate on its decision.

At Flipkart, we believe that technology and the innovation-driven marketplace can add significant value to our country’s farmers and food processing sector by bringing value chain efficiency and transparency. This will further aid in boosting farmers’ income and transform Indian agriculture,” a Flipkart spokesperson said in a statement to the publication adding that the company was evaluating the department’s response and it intended to re-apply soon.