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DPIIT rejected Walmart-backed Flipkart’s proposal

New Delhi: The Department for Promotion of Industry and Internal Trade (DPIIT) has rejected Walmart-backed Flipkart’s proposal seeking approval for entry to the food retail sector citing a regulatory issue, an official said on Monday.

The government permits 100 percent foreign direct investment in food retail for food produced and manufactured in India.

Last year, the company had set up a new local entity – Flipkart Farmermart – to focus on food retail in India, and had applied for requisite licences from the government.

Flipkart Group CEO Kalyan Krishnamurthy, at that time had said that the move an important part of the company’s efforts to boost Indian agriculture as well as food processing industry in the country.

“Yes, the department has rejected the proposal,” the government official said.

Commenting on the development, a company spokesperson said that Flipkart intends to re-apply for the permit.

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