NEW DELHI—Amazon.com Inc. wants to stock and sell groceries online directly to consumers in India, two senior government officials said, the latest move in its quest to boost sales in the South Asian nation.

The e-commerce company has sought approval from India’s Trade Ministry to invest about $500 million in the new venture. The new Amazon grocery service would take advantage of recently eased restrictions on foreign retailers and deliver mostly local food products such as fruits, vegetables and other staples, according to...