Sweden's IKEA, the world's largest furniture maker, will invest $600 million in the Indian retail market, a trade ministry official said on Friday.
IKEA CEO Mikael Ohlsson met Indian trade minister Anand Sharma in St. Petersburg, Russia, to discuss the investment. The official said the company, which had filed an application to start operations in India, would increase sourcing from the country to $1 billion.
India currently allows 100 percent foreign direct investment in single-brand retail, but bars foreign investment in supermarket chains.