Ikea gets FIPB approval

Swedish furniture giant, Ikea moves a notch closer to its dream of setting up stores in India as its Rs 10,000 crore proposal gets a thums up from the Foreign Investment Promotion Board (FIPB). The Cabinet Committee on Economic Affairs (CCEA) will now examine the proposal and is likely to give a go ahead on the same as well. 

IKEA’s investment is the largest foreign investment in India’s retail sector and will give India a much needed booster in investor confidence, which is currently quite low due to the government failing to enact important reforms and at the time when gross domestic product growth slowed to nine-year low of 5.3 per cent in the March quarter.

Earlier, the FIPB had approved two proposals in the single-brand retail sector which included Pavers England and Brooks Brothers.