India to fast track Ikea debut in Hyderabad

Swedish furniture retailer Ikea says its first store in India will open in Hyderabad.

Ikea is one of the foreign companies allowed by the Indian government to open own stores in India. Its application to invest US$2 billion to open 25 stores through its subsidiary Ingka Holdings Overseas BV was approved by the Cabinet Committee on Economic Affairs in May.

The Telangana government said it would fast-track all necessary clearances for Ikea, in line with its goal to attract more foreign investment.

“The decision by Ikea to set up its first store in Hyderabad will place the city on the international map of Ikea stores. The backward integration of supplier linkages will have tremendous economic impact to the state,” said a press release from the state government.

Telangana industries secretary K Pradeep Chandra said the Ikea store will sit on a 10-acre plot and offer direct employment to at least 1,000 people.

Bangalore, Mumbai and Delhi will be Ikea’s next locations in India.