The Swedish home products and furniture retailer Ikea has secured an approval from the Foreign Investment Promotion Board of India to operate wholly owned outlets in the country.
In its latest FDI retail policy, the Indian government has agreed to allow few foreign retailers to own 100 per cent of their Indian subsidiaries to improve economy. It also allowed Wal-Mart and Carrefour to own as much as 51 per cent of outlets.
The Indian foreign investment agency cleared Ikea’s proposal in November 2012 with restrictions to sell furniture including food and beverages, textiles, books and office supplies. Now, with the resubmitted proposal, the company secured to rights to operate in the same model it uses elsewhere. The proposal is pending federal cabinet’s approval.
Juvencio Maeztu, IKEA country manager, in a statement, said: “We consider this as a very positive development.”
The Indian trade minister, in a statement, said: “The government is committed to play a constructive role in encouraging FDI (foreign direct investment) specially in areas which create jobs and provide technological advancement.”