Formally approving IKEA's request for setting up stores in the country, the Union government has informed the Swedish furniture giant its sourcing from India for global operations would not be counted under the sourcing requirements for running single-brand retail stores here. The commerce and industry ministry, in a June 14 letter, allowed the company to sell 18 kinds of products.
IKEA already sources products worth Euro 1 billion from India and mainly from handloom and carpet clusters. The letter said: "Sourcing from IKEA entity from India or the Indian entity of the IKEA group cannot be included for compliance of IKEA India." For single-brand retail trading, companies with over 51 per cent foreign investment have to source 30 per cent of the value of goods from India.
