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Swedish furniture-maker IKEA has got final clearance from the Cabinet Committee on Economic Affairs to invest Rs 10,500 crore in India.
It can now go ahead with its plans to set up 25 retail stores across the country over the next few years.
IKEA has also been allowed to sell food items in its cafeterias inside the furniture outlets. Initially, there was some confusion over whether this would be allowed, but the Industry Ministry clarified that while food retailing will not be permitted, the company can sell food in its cafeterias.
The Foreign Investment Promotion Board had in February approved IKEA’s proposal to start operations in India through its wholly-owned subsidiary, but as the proposed investment exceeds Rs 1,200 crore, it required a go-ahead from the CCEA.
“This will be the biggest foreign investment in the retail segment till now and will provide an opportunity to Indian small and medium enterprises in a wide range of labour-intensive sectors for integrating into the global value-chain.
“On the other hand, it will also provide a diverse choice for Indian consumers for a wide range of products,” Commerce and Industry Minister Anand Sharma said in a press statement.
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