Last updateTue, 17 Mar 2015 2pm

Ikea anger at "half-hearted" Indian regulations

Ikea has expressed anger at the Indian government’s decision to disallow the company to sell most of its product range at its planned India stores.

The Swedish retailer says making its entire range available in stores is imperative for the Ikea concept to work and has asked the government to reconsider its decision.

According to a report in the Economic Times, the government refused the company to sell a majority of its’ home furnishings range citing the country’s ‘Single Brand FDI policy’.

Ikea has positioned itself as a ‘one-stop shop’ for home furnishings and sells a range of nearly 11,000 different products.

The Indian government however, has disallowed the company to sell items such as home and office products, textiles, apparel and fabric, electronic items, leather products, toys, books and travel related items.  

The government has also refused the company permission to set up its’ popular Ikea café’s inside stores in India.

Reports from India say it is unusual for a foreign company to request a review of a government decision related to FDI and Ikea’s move could mean the company is rethinking its decision to enter the lucrative Indian home furnishings market, estimated to be worth $18.5 billion and growing fast.

The company’s travails are the latest faced by foreign companies looking to invest in India.

Despite the government in Delhi approving Foreign Direct Investment a lack of clarity in the regulations will mean continued delays for foreign firms.



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