Ikeaís Rs.10,500-crore FDI proposal gets FIPB nod
This means the multinational will be free to sell products apart from furniture in its store and also run its signature restaurants and cafes.
However, the proposal still needs to be cleared by the Cabinet Committee on Economic Affairs (CCEA) as required for all foreign investments over R1,200 crore.
Welcoming the FIPB approval, commerce and industry minister Anand Sharma said: ďThe decision of FIPB to recommend the Ikea case for investment was cleared, which is a positive development. The government is committed to play a constructive role in encouraging FDI especially in areas which create jobs and provide technological advancement. Globally, Ikea has a business model which integrates in its embrace SMEs and domestic industry, making them the part of global value chain.Ē
Sources said Sharma was keen that the FIPB cleared the proposal before he left for the World Economic Forum in Davos on Tuesday to send out a positive signal to investors.
In fact, it was Sharma who told the Express Groupís Idea Exchange programme for the first time that the government would clear Ikeaís proposal to set up stores on its global model. Sharma had said that he had approved the proposal and the matter would be officially cleared by the FIPB once Ikea provided the clarifications sought by the government. ďIkeaís proposal based on its global model, which includes