India’s Foreign Investment Promotion Board (FIPB) has approved Ikea’s proposal to set up its own stores.

The approval brings the Swedish furniture retailer’s $2 billion investment plan for India even closer to fruition. FIPB said it would now forward the proposal to the federal cabinet.

“It’s an important milestone. We consider this as a very positive development,” said Juvencio Maeztu, Ikea’s manager for India.

“We are now waiting for approval from the cabinet and subsequently a notification so that we can initiate the process of establishing Ikea stores in the country,” he added.

Trade minister Anand Sharma said the approval will create confidence among global investors that India has a positive environment for investors.

“The government is committed to playing a constructive role in encouraging (foreign direct investment), especially in areas which create jobs and provide technological advancement,” said Sharma.

Ikea plans to open 25 wholly owned stores, including cafes, in India within 15 to 20 years.

GB