IKEA won't be allowed to sell food items in India: Government

New Delhi, April 22 (IANS) Swedish firm IKEA can be allowed to run restaurant and cafe along with single brand furniture stores, but it won't engage in retailing of food items, Commerce and Industry Minister Anand Sharma said Monday.

Sharma said IKEA recently sought permission for single brand retail trading of its products and establishment of IKEA restaurants and cafes.

"The proposal has been recommended by the FIPB (Foreign Investment Promotion Board) to the extent that IKEA can have a restaurant/cafe in accordance with their global model but cannot engage in retailing of food items," Sharma said in written reply in the Lok Sabha.

He said the Indian government has proposed the condition on IKEA that "food and beverages to be sold within IKEA restaurant/cafe loacated in the IKEA retail store. No food items shall be retailed off the shelf in any other part of the retail store."

The FIPB has approved the world's largest furniture maker IKEA's proposal to invest Rs.10,500 crore in single brand retail business in India. The proposal is yet to be approved by the cabinet. Overseas investment proposals worth above Rs.1,200 crore have to be approved by the cabinet.