IKEA official to meet Sharma tomorrow; may discuss retail plans

IKEA official to meet Sharma tomorrow; may discuss retail plans New Delhi: Swedish furniture major IKEA's senior official who is responsible for South Asia, is likely to meet Commerce and Industry Minister Anand Sharma tomorrow and discuss the company's Rs 10,500 crore retail plans for India.

Jessica Anderen, IKEA's Trading Area Manager for South Asia, is likely to discuss the company's plans for India with Sharma, a source said.

With the government relaxing the sourcing norms for FDI in single-brand retail, IKEA, on October 8 had filed the final document seeking permission to open fully-owned stores in the country.

Last month, the government had tweaked sourcing norms for FDI exceeding 51 per cent in single-brand retail and diluted the previous condition of sourcing 30 per cent of requirements , mandatory, from micro, small and medium enterprises (MSMEs) in India by stating that sourcing should be done, preferably from MSMEs.

This was one of the major issues raised by IKEA while approaching the government in June with its plans to invest 1.5 billion euro (Rs 10,500 crore) in India to set up 25 stores.

Without specifying a timeline for opening its first store in India, IKEA has said that once its application is approved, it will develop a solid plan for the establishment of IKEA stores for many years to come, generating investments and new employment.

PTI