Will Ikea be able to run its cafe in India? FIPB to take call today
The FIPB, headed by economic affairs secretary Arvind Mayaram, has already allowed Ikea to invest R4,200 crore to undertake single brand retailing of its products. Following a representation from the Swedish firm, the Department of Industrial Policy and Promotion (DIPP) had recently forwarded a request to FIPB for reviewing its November 20 decision giving only part approval to Ikea's plan.
"Review the request of DIPP" regarding Ikea is on the FIPB agenda, sources said. Batting for Ikea's proposal, commerce minister Anand Sharma had recently said that government has taken a favourable view on Ikea's request.
"All the stores globally whether Ikea or some other single-brand retailers, where people shop for longtime... There are cafeterias inside. The government has taken...note of the representation that Ikea has made in this regard and a favourable view has been taken so that we accept their global model and the process of FIPB's formal approval is currently underway," he said.
Sources said that besides furniture, the Scandinavian firm in its original application had sought government approval to sell items such as textile products, consumer electronics, leather products, lifestyle products, and food and beverages to be served at its restaurants and cafe.
The company had envisaged an investment of R10,500 crore in single brand retail trading after India allowed 100% FDI in the
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