IKEA shelves $1 bn India investment plans
New Delhi, Jun 11: IKEA, the Swedish furniture giant has decided not to go ahead with its plan to set up shop in India, after talks with the government to further open up foreign direct investment in single-brand retail operation failed.
IKEA sources said that the decision to shelve India plans was taken on Friday, Jun 5, after the company had parlays with government officials.
IKEA had plans to invest about $1 billion in India to establish a retail chain including stores in Delhi and Mumbai. The investment was to flow through the single-brand FDI window and the furniture giant had hired staff for the retail venture and was preparing for a significant foray into the Indian market.
The Swedish company was hoping that the government will raise the FDI limit in this segment to 100 pc from the existing 51 pc. With the government indicating that it has no immediate plans to raise the FDI limit, the company decided to shelve its plan to enter Indian market for now.