New Delhi: The Foreign Investment Promotion Board (FIPB) has given approval to Rs 10,000 crore investment proposal of Swedish furniture major, IKEA. The company will now be able to sell all its products and set up cafeterias at its retail stores.
The FIPB, which is the nodal agency for approving foreign direct investment proposals, had earlier approved Rs 4,200 crore out of a total of Rs 10,000 crore investment proposal by IKEA to open single-brand retail stores in India. The proposal now needs a go-ahead from Cabinet Committee on Economic Affairs.
"IKEA's case for investment is cleared, which is a positive development. The government is committed to playing a constructive role in enhancing FDI, especially in areas which create jobs and provide technological enhancement," Commerce Minister Anand Sharma said.
IKEA had originally sought approval for investing up to Rs 10,500 crore in the country. Following the part approval, the company made a representation to the Department of Industrial Policy and Promotion, which forwarded the request to FIPB seeking a review of its November 20 decision.
KEA Group, which manufactures and sells home and office furnishing products, proposes to invest in single-brand retail trading in India through a 100 per cent subsidiary. The company's proposal was withdrawn from the agenda of the meeting on December 31 of the FIPB, as more information was sought from the company regarding its FDI plans in India.
(With Additional Inputs From PTI)