IKEA says to double sourcing from India by 2020

REUTERS - Sweden's IKEA Group plans to double the amount of goods it sources from India by 2020, a boost for Prime Minister Narendra Modi's efforts to support manufacturing in his country.

IKEA, which currently takes goods worth around $370 million from India each year, was among the first companies to move into India after the country changed its rules to allow 100 percent foreign direct investments.

Its store opening plans, however, got delayed as it became ensnared in the country's complex sourcing and other policies.

The Swedish retailer, known for huge warehouse-like stores, said in a statement it was looking for new suppliers for furniture, mattresses, textiles and rugs among other products.

IKEA's statement coincides with a major push by the Indian government to prop up the country's manufacturing sector to boost economic growth.

"While India is not a big sourcing market for home furnishings today, we see potential to make it a major a manufacturing and sourcing hub for our global markets," Sandeep Sanan, head of purchasing for IKEA South Asia, said in a statement.

(Reporting by Nivedita Bhattacharjee in Mumbai; Editing by Keith Weir)