As of now, the government permits 100% foreign direct investment (FDI) in the food processing sector. As per norms, a foreign company can open a wholly-owned subsidiary in India to retail food products produced and or manufactured in the country by way of opening stores or online.
Indian government had received investment proposals from three companies - Amazon, Grofers and Big Basket. Amazon India has received the nod from DIPP.
By the way, Amazon is in talks to acquire BigBasket - Paytm too is one of the contenders.