IKEA to More Than Double India Investment to $2.2 Billion in Five Years
Sweden’s IKEA plans to more than double its investment in India to over 200 billion rupees ($2.2 billion) over the next five years, signalling strong confidence in the country’s growth potential. The furniture retailer aims to expand its store network and significantly increase local sourcing as it positions India to become one of its top global markets, according to IKEA India CEO Patrik Antoni.
IKEA, which entered India in 2018 with its first store in Hyderabad, will also widen its digital footprint by starting online sales in cities where it does not yet have physical stores, including Chennai and Coimbatore. This marks a first for IKEA globally, with the company choosing an online-first approach in new markets to cater to younger consumers and ease challenges such as urban traffic. The company’s India sales rose 6% to 18.61 billion rupees in the year ended August 2025, and it plans to quadruple revenue while expanding to around 30 stores.
Alongside retail expansion, IKEA will double production in India for domestic sales and exports to about 800 million euros ($930 million). The move aligns with a broader trend of global brands ramping up sourcing and manufacturing in India to cut costs and diversify supply chains. Despite higher U.S. tariffs on some Indian goods, Antoni said IKEA’s Indian suppliers have seen limited impact, as most exports are destined for markets beyond the United States.
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