Giving formal approval to IKEA for setting up stores in the country, Government has clarified that it’s sourcing from India for global operations but which will not be the benchmark for sourcing requirements for running its Indian stores. The Commerce and Industry Ministry has given approval to the company to sell 18 categories of products, including textile furnishing, bathroom products, kitchen utensils, electrical, mirrors, boxes and bags, beach and outwears, glassware, earthenware, home renewable energy and home safety.
[bleft]International Compliance Norms not applicable in Indian retailing
Textile furnishing & bathroom products would be main categories[/bleft]
IKEA already sources products worth 1 billion Euros from India, mainly from handloom and carpet clusters. The sourcing norms of Indian operations would be different for Indian retail to that of its international retail sourcing. As per the FDI policy for single-brand retail trading, companies with over 51 per cent foreign investment will have to source 30 per cent of the value of goods from India, preferably from MSMEs, village and cottage industries, artisans and craftsmen, in all sectors.
