Swedish furniture retailer Ikea has been approved by India’s foreign investment agency to open outlets in India, which has recently opened up its retail sector for foreign investment.
Being the first single-brand foreign company to open stores in the country, Ikea plans to open as many as 25 stores with an investment of about $2bn (£1.3bn, €1.5bn) over the next 15 to 20 years. The amount would be the largest committed by a foreign company in India since it allowed 100 percent foreign ownership in single-brand retail stores.
India’s Foreign Investment Promotion Board (FIPB) would forward the proposal to the Cabinet Committee on Economic Affairs, which is widely expected to approve the plan.
“The government is committed to play a constructive role in encouraging foreign direct investment especially in areas which create jobs and provide technological advancement,” Trade Minister Anand Sharma said.