NEW DELHI -- Ikea, the world's furniture juggernaut, has offered the government of India a deal: Open up the market to Ikea retail stores and the Swedish-based company will double its sourcing of furniture and others goods from India businesses.
According to the Economic Times, India's investment rules prohibit foreign retailers to "back-end" wholesaling -- except for single-brand outlets such as Nokia or Reebok -- to protect local, family-run stores which fear being driven out of business.
Ikea chief executive Mikael Ohlsson reportedly urged the government to reconsider its regulations and allow Ikea to open retail stores in India, saying there is "room for all players."
Currently, Ikea reportedly sources more than $650 million in textiles, furniture and other products from India each year. The company said it would more than double that amount within the next few years if it can also establish stores in India.
Ohlsson said Ikea could bring jobs and other benefits to India, the Times said.
According to the Economic Times, India's investment rules prohibit foreign retailers to "back-end" wholesaling -- except for single-brand outlets such as Nokia or Reebok -- to protect local, family-run stores which fear being driven out of business.
Ikea chief executive Mikael Ohlsson reportedly urged the government to reconsider its regulations and allow Ikea to open retail stores in India, saying there is "room for all players."
Currently, Ikea reportedly sources more than $650 million in textiles, furniture and other products from India each year. The company said it would more than double that amount within the next few years if it can also establish stores in India.
Ohlsson said Ikea could bring jobs and other benefits to India, the Times said.
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