India foreign investment panels clears Ikea entry
NEW DELHI (AFP) - India's foreign investment panel has cleared a nearly US$2 billion (S$2.4 billion) plan by Swedish furniture giant Ikea to open its stores in the country as it seeks new markets for its flat-pack products.
Two months ago, the Foreign Investment Promotion Board rejected 15 of Ikea's 30 product lines, including food and textiles, underscoring the regulatory hurdles faced by foreign stores hoping to enter the Indian market.
But late on Monday, Commerce Minister Anand Sharma said the investment board had cleared the plan.
"This is a positive development," Mr Sharma said. "The government is committed to playing a constructive role in encourage foreign direct investment.