IKEA not coming to India, not yet

by Deepak Sharma on Sunday, June 14, 2009

IKEA has scrapped their plans of setting shops in India.  The Sweden-based Furniture giant shelved plans to foray into retail business in India until the Indian government allows 100 per cent Foreign Direct Investment (FDI) in single-brand retailing in the country.

From Economic Times:

IKEA, which was hoping to invest $1 billion in India to establish a retail chain including stores in Delhi and Mumbai, was disappointed by what it perceived to be a lack of an early government action in the issue, the officials said. 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.
Swedish company was hoping that the government will raise the FDI limit in this segment to 100% from the existing 51%. With the government indicating that it has no immediate plans of raising the FDI limit for single-brand retail, the company has indicated that it did not want to enter the Indian market now. A number of global brands, such as Reebok and Louis Vuitton, French Connection and Jimmy Choo, are present here through the single-brand retail window.


Foreign business builds economies in todays world. India should reconsider their policy as they may see their economy change for the better after.

by Los Angeles retail on 9:46 AM. #

While people may have different views still good things should always be appreciated. Yours is a nice blog. Liked it!!!

by Donald on 5:22 AM. #

I like the information you provide, I hope to see you update content again soon. Please contact me about putting your site on our Blogroll; and visaversa. You may contact me by going to our site and send me a message via the 'contact' page on retailrally.com Thanks!

by Michael on 7:18 PM. #

I chanced upon to view your blog and found it very interesting. Great ... Keep it up!

by Market Research on 3:35 AM. #

To bad, IKEA in India would have made a ton of cash off of it.

by Anonymous on 9:28 PM. #

Seen your blog. It Looks Nice...!!

You got a nice Techie blog. I want to ask u 1 thing , are you interested in guest blogging ?

I have a Technology Portal, www.techrar.com . You can write an article in my blog and get back free backlinks from my blog. Interested ? contact me at mohan@techrar.com....!!

by Mohan Kumar on 9:18 PM. #

Its not a good news but hopefully the company would come soon to India, and certainly can enjoy the advantage of doing business in such a large country.

by Free File Hosting on 2:07 AM. #

Ikea have announced plans to open their largest wholesale store here is Australia recently as well. Very interesting post, look forward to reading your next one. I'm beginning to share some of my experience with blog as well, would appreciate your thoughts as well. http://retailleasesolutions.arls.com.au

by Tim on 10:42 PM. #