May 04, 2012, 03.12 PM | Source: CNBC-TV18
Swedish furniture and home-ware retailer IKEA's CEO met India’s commerce minister Anand Sharma to discuss the rules set for the foreign direct investment (FDI) in single brand retail sector.
Swedish furniture and home-ware retailer IKEA's CEO met India's commerce minister Anand Sharma to discuss the rules set for the foreign direct investment (FDI) in single brand retail sector.
IKEA was expected to line up for permission to enter India after the government fully opened up the single-brand retail sector to foreign companies earlier this month. But the Swedish firm has said that it would be difficult to meet some terms of the policy unveiled by the government and has said it is still hopeful of starting operations once the rules are "appropriate."
Sources say IKEA will have another meeting with commerce ministry officials in the next week few weeks seeking more clarity on the matter.
IKEA told CNBC-TV18 that India remains an important potential market for the company. It is working to see impact of the single brand retail in FDI norms before making any concrete India plans.
While permitting foreign players to set up wholly-owned single brand retail ventures in the country, the government had mandated that at least 30% of the sourcing should be from small units or artisans. "Small units" are defined as those which have an investment of up to USD 1 million or about Rs 5 crore.
(With inputs from agencies)