India has rebuffed a request by IKEA to relax rules on buying goods locally, a government source said on Friday, raising the prospect of a delay in the world’s largest furniture maker entering the Indian retail market.
IKEA, famous for its self-build flatpacks and huge stores, said last month it would invest EUR1.5 billion (USD1.86b) and open 25 outlets, throwing a lifeline to the government in India where economic growth has slowed sharply.
But the Swedish company sought a 10-year window to comply with rules that foreign retailers source 30 percent from local small and medium-sized firms, a requirement which overseas companies say discourages investment.
(Source: CNBC)