Swedish home furnishings retailer IKEA plans to raise its investment commitment in India to more than Rs200bn ($2.18bn) over the next five years.
According to a Reuters report citing a senior executive, the move comes as the company looks to expand its store footprint and increase local sourcing.
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The company, which launched its first Indian outlet in Hyderabad in 2018, is also preparing to broaden its e-commerce presence.
Online ordering will be extended to four additional cities where IKEA does not yet have physical stores, including Chennai and Coimbatore in the southern state of Tamil Nadu.
Digital sales already account for more than 30% of IKEA’s India revenue, with the company aiming to increase this share to 40%.
At the same time, it intends to double production for both domestic sales and exports to €800m ($930m), IKEA India CEO Patrik Antoni was reported as saying.
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By GlobalDataThe expansion comes amid a broader shift by international brands to scale up manufacturing and sourcing in India to manage costs.
Consumer-facing companies such as Asics and VinFast Auto have also been increasing local procurement to support their domestic operations.
Last year, US President Donald Trump imposed higher tariffs on certain Indian imports, with rates reaching as high as 50%, prompting several industries to consider alternative export markets.
Antoni told Reuters that these tariff measures had not had a material impact on IKEA’s supplier base in India, noting that with most of the company’s stores located in Europe, a greater share of production is shipped to markets outside the US.
Recently, IKEA announced plans to close seven stores in China from 2 February 2026.
The locations scheduled for closure are IKEA Shanghai Baoshan, IKEA Guangzhou Panyu, and IKEA Tianjin Zhongbei, along with stores in Nantong, Xuzhou, Ningbo and Harbin.
The company said the decision forms part of an optimisation exercise aimed at improving efficiency across its physical and digital channels.
