The government said that
Flipkart, a Walmart-controlled company, would not be allowed in food retail.
The Department for Promotion of Industry and Internal Trade (DPIIT) wrote to Walmart that they would not be allowed to enter the food retail business
⇛The Government of India has expelled the e-commerce giant Flipkart's move to enter the food retail, the government has said citing issues for restriction.
⇛Flipkart FarmerMrat had proposed that the company will sell products made and produced in India on its Flipkart and other mobile platforms. The government denied saying that the Memorandum of Association of the company does not allow it to enter the food retails.
⇛A few years ago, the government had allowed 100% FDI in food retail to increase sales of Indian origin products. This decision of the government is a big loss for Flipkart, which was trying to sell the product directly from its platform by taking the product from the farmer.
⇛There are many companies in India that have got government permission in the food retail business for the last three years. Amazon and growers are one of them
⇛The Indian government has strengthened the norms of FDI so that foreign e-commerce companies cannot transform themselves into the Inventory based model so that only the third-party seller can sell goods to the customers through these platforms.
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