Swedish furniture giant IKEA has received the nod from FIPB( Foreign Investments Promotion Board,the government's single-window body to clear foreign investment proposals), to set up stores in India. It will become largest FDI deals in single-brand retail so far, which will bring in investment of over Rs 10,500 crore in India.
Economic Affairs Secretary Arvind Mayaram announced this.
IKEA Group proposes to invest this amount through a 100 percent subsidiary. IKEA group are manufactures and sellers of home and office furnishing products.
IKEA's intends to set up 25 stores in India for which they already have permission from the Department of Industrial Policy and Promotion (DIPP) in the Commerce and Industry Ministry. The proposal will now have to be cleared by the Cabinet Committee on Economic Affairs (CCEA) as the FIPB can clear investment applications worth up to Rs 1,200 crore only.
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