Swedish retail chain IKEA’s Foreign Direct Investment (FDI) proposal will be taken up by the Cabinet Committee on Economic Affairs (CCEA), after it was forwarded by the Finance Ministry for the CCEA’s consideration.
“One proposal of M/s Ingka Holding Overseas B.V., amounting to Rs. 10,500 crore, has been recommended for consideration of CCEA,” the Finance Ministry said in a statement here on Wednesday. Ingka Holding Overseas is parent company of IKEA.
The Foreign Investment Promotion Board (FIPB) had earlier cleared the proposal on January 21. However, since the proposed foreign investment is valued at more than Rs. 1,200 crore, it requires CCEA clearance.
The IKEA Group, which manufactures and sells home and office furnishing products, had proposed to start single-brand retail trading in India through a 100 per cent subsidiary. It plans to set up 10 furnishing and home-ware stores as well as allied infrastructure over the next 10 years.
This would be the largest investment in the single-brand segment after the government allowed 100 per cent FDI last year.
This article has been corrected for an editing error.