• Sweden edition
Ikea clears major hurdle in India expansion bid

Ikea clears major hurdle in India expansion bid

Published: 22 Jan 2013 07:19 GMT+01:00
Updated: 22 Jan 2013 07:19 GMT+01:00

Two months ago, the Foreign Investment Promotion Board rejected 15 of Ikea's 30 product lines, including food and textiles, underscoring the regulatory hurdles faced by foreign stores hoping to enter the Indian market.

But late on Monday, commerce minister Anand Sharma said that the investment board had cleared the plan.

"This is a positive development," Sharma said.

"The government is committed to playing a constructive role in encourage foreign direct investment.

Ikea had told the Indian government the company must be allowed to retain its "global model" in India, retailing all of its products and running its in-store restaurants as it does in every country where it has operations.

Reacting to the announcement, Ikea said the clearance of its proposal by the foreign investment panel "as per the Ikea concept" was "an important milestone in the application process".

"We consider this as a very positive development," Juvencio Maeztu, Ikea country manager, said in a statement.

"We are now waiting for approval from the cabinet and subsequently a notification so that we can initiate the process of establishing Ikea stores in the country," Maeztu said in a statement.

Clearance from the Indian cabinet was expected to be forthcoming after the commerce minister said late last month that "we accept their global model" and "we see no reason why their global model has to be changed in any manner."

Ikea's entry into India -- it has pledged to invest $1.9 billion in coming years -- is being closely watched as a test case for how a large foreign corporation negotiates India's byzantine rules and red tape.

The government in September announced a string of pro-market and investor-friendly reforms that relaxed or removed barriers to foreign retailers.

Ikea, which submitted its application last June, hopes to open 25 of its stores in India through a 100-percent owned unit, Ingka Holding, as part of a wider push into emerging markets such as China and Russia.

Ikea, which in 2009 scrapped plans to enter the market due to regulatory concerns, says it has a "long-term vision" for India and sees huge potential in its burgeoning middle class.

AFP/The Local/dl

Follow The Local on Twitter

Don't miss...X
Left Right

Your comments about this article

08:00 January 22, 2013 by antony6661
Indians WELCOMES IKEA to India. But Please do not pay our Indian Minsters & middle men bribes. India is the MOST Corruupt coutnry & Indian Govt is the most greedy & filty govt any where in the world. They have robbed the poor indian for the last 65 years and reduced over 500 million indinas to begger status. Eventually the corruption & bribes will come out. Below is some scams & loot from Indian & gone to swiss & other banks.

Rudolf Elmer has givne 2000 names . The source of income is from corruption, illegal activities, drug deal, fake project. The deposits in Swiss Bank was started from early 70s. Major share of Indian black money routed from Pakistan.

LOOTED INDIAN MONEY in Swiss banks, other tax havens & invested abroad: about $100-150 trillion. IGI Airport scam = $32 billion(FC) Coal Mining Scam = $213 billion(FC) Karnataka Wakf Board Land Scam = $39 billion(FC) Andhra Pradesh land scam = $20 billion(FC) Service Tax and Central Excise Duty fraud = $3.82 billion(FC) Gujarat PSU financial irregularities = $3.39 billion(FC) Maharashtra stamp duty scam = $126 million(FC) Highway scam = $13.97 million(FC) Ministry of External Affairs gift scam = $100,000(FC) Himachal Pradesh pulse scam = $200,000/month(FC) Flying Club fraud = $38 million(FC) Jammu and Kashmir Cricket Association scam = $10 million (MC) Punjab paddy scam = $3.59 million(FC) Arvind Joshi and Tinu Joshi = $50 million(FC) Uttar Pradesh seed scam = $9.98 million(FC) (2011 - 1948) Obsolete French Fighter Jets = $11 billion(FC) NHRM = $2 billion(BC) Goa mining scam = $700 million(FC) Noida Corporation farm land scandal = $40 million(SC) Bellary mines scandal = $3.2 billion(FC) BL Kashyap EPFO Scam = $118 million(FC) Hasan Ali Khan = $8 billion(MC) ISRO-Devas = $300 million(FC) Cash-for-votes = $715,000(FC) 2G spectrum scam/Radia Tapes = $6.9 billion(BC) Adarsh Housing Society(FC) Commonwealth Games = $15.5 billion(FC) LIC Housing Loan scam = $200 million
12:05 January 23, 2013 by Adnan M
@antony6661, it's hard to understand why you guys cannot live without mentioning Pakistan for the responsible of each bad thing happening in India. The list you have given has nothing to do with Pakistan. Black money does not have to be travel via Pakistan. It can go directly where it wanna reach.
Today's headlines
Race to be scrapped from Swedish legislation
Integration Minister Erik Ullenhag meets children in Husby, Stockholm. Photo: Jonas Ekströmer/TT

Race to be scrapped from Swedish legislation

The Swedish government announced that it plans to remove all mentions of race from Swedish legislation, saying that race is a social construct which should not be encouraged in law. READ  

US aircraft 'violates' Swedish airspace

US aircraft 'violates' Swedish airspace

A mystery airplane that passed over Swedish airspace recently has been revealed as an American aircraft, sources revealed on Thursday. READ  

Elite schools stripped of 'special' privileges

Elite schools stripped of 'special' privileges

Sweden's three elite boarding schools can no longer charge tuition fees, the government announced on Thursday, in a string of changes following a two-year review. READ  

Bildt lays out four steps to Gaza peace
Photos: TT

Bildt lays out four steps to Gaza peace

Swedish Foreign Minister Carl Bildt stated that there are four steps to achieving peace in Gaza, and that it begins with removing the blockade - which has "played into Hamas' hands". READ  

Malmström snags EU commissioner post again

Malmström snags EU commissioner post again

Cecilia Malmström has been nominated to be the European Commissioner for another five years, Sweden's prime minister announced on Thursday. READ  

Stockholm Pride 2014
In Pictures: Stockholm's Historic Pride Party
Conchita Wurst belts out a ballad. Photo: Rebecca Jacobs

In Pictures: Stockholm's Historic Pride Party

With Stockholm's Pride Week in full swing, The Local's Rebecca Jacobs heads on down to the traditional Historic Party to take in the colours, Conchita, and the community. READ  

Two to hospital after Stockholm fire

Two to hospital after Stockholm fire

Two people were taken to hospital in the early hours of Thursday morning after a fire began in their central Stockholm apartment. READ  

Salmonella prompts Coop hamburger recall
Photo: Jim Cole/TT

Salmonella prompts Coop hamburger recall

Swedish supermarket chain Coop has recalled its in-store brand of fresh hamburger meat after a routine check revealed traces of salmonella in the meat. READ  

What's On in Sweden
Photo: Roger Vikström/TT

What's On in Sweden

It's Pride Week in Stockholm. Find out more about the celebrations (including the biggest Pride Parade in Scandinavia) as well as plenty of other activities in Sweden's three biggest cities. READ  

Sweden resumes aid to 'anti-gay Uganda'
Hillevi Engström and protesters against Uganda's anti-gay laws. Photos: Maja Suslin/Ben Curtis/TT

Sweden resumes aid to 'anti-gay Uganda'

Sweden has resumed sending development aid funds to Uganda, after suspending payouts back in March due to "anti-gay legislation". READ  

Stockholm Pride bars Sweden Democrats
Gender neutral pronoun 'hen' enters dictionary
Top ten cafes in Stockholm
People-watching - Stockholm Pride
Photo: Henrik Trygg/Imagebank Sweden
Sweden worst in EU at getting foreigners jobs
Blog updates

31 July

Calling a speedo a speedo (Blogweiser) »

"There are a lot of speedos on Europe’s beaches. Some European males are evidently more comfortable sporting small, stretchy suits on public beaches than I would be. I accept it may be nice to have swimwear that’s not long and cumbersome. A speedo is maybe also good for tanning. But strolling around town in a..." READ »


27 July

Approaching Stockholm (Around Sweden in a kayak) »

"I woke up in the comfort of my own little cabin on Eva and Rolf’s boat, it was 7:30am and I was feeling a bit groggy after a couple of beers with all the lovely locals the night before. The previous day had really taken its toll on my body and I was very stiff and..." READ »

Stockholm Pride kicks off
The top six ways the US and Sweden differ
Swedish youth suicides hit 25-year high
Politician reported for selling 'negro ball'
Police turn blind eye to Swedish 'slave trade'
Stockholm Pride: Allsång på Skansen with Conchita Wurst
Sponsored Article
Introducing... ID cards and permits in Stockholm
People-watching, June 26th - 28th. Get inside Stockholm's hottest nightclubs
Top ten Swedish taboos
Seven-year-old Swede cycles to Berlin
'Gaza conflict needs help, not empty rhetoric'
Swedes voted 'most beautiful' in the Nordics
Business & Money
Sweden demands EU clarity on Bitcoin tax
Swedish organic sales enjoy 'amazing' growth
Photo: Johan Nilsson/TT
What's On in Sweden
People-watching July 23
Swedish cops elect not to shoot 'angry elks'
Business & Money
New alcohol retail rules threaten micro-breweries
People-watching Båstad
Sponsored Article
Introducing... Your finances in Stockholm
Sponsored Article
Introducing... Housing in Stockholm
Latest news from The Local in Austria

More news from Austria at thelocal.at

Latest news from The Local in Switzerland

More news from Switzerland at thelocal.ch

Latest news from The Local in Germany

More news from Germany at thelocal.de

Latest news from The Local in Denmark

More news from Denmark at thelocal.dk

Latest news from The Local in Spain

More news from Spain at thelocal.es

Latest news from The Local in France

More news from France at thelocal.fr

Latest news from The Local in Italy

More news from Italy at thelocal.it

Latest news from The Local in Norway

More news from Norway at thelocal.no

jobs available
Swedish Down Town Consulting & Productions
Swedish Down Town Consulting & Productions is an innovative business company which provides valuable assistance with the Swedish Authorities, Swedish language practice and general communications. Call 073-100 47 81 or visit:
If you want to drink, that’s your business.
If you want to stop, we can help.

Learn more about English-language Alcoholics Anonymous in Sweden. No dues. No fees. Confidentiality assured.
PSD Media
PSD Media is marketing company that offers innovative solutions for online retailers. We provide modern solutions that help increase traffic and raise conversion. Visit our site at: