Ikea plans to double India investment to more than US$ 2.20 billion in 5 years
- IBEF
- January 21, 2026
The Swedish giant IKEA is preparing for a massive expansion in India, which will see its investment grow by more than double to over Rs. 20,000 crore (US$ 2.20 billion) in the next five years. The company has been working to increase its offline presence in the country since it established its first store in Hyderabad and is now set to increase its offline stores from 6 to around 30 in the coming years in addition to enhancing its online presence in other cities like Chennai and Coimbatore where it has no stores yet but sells its goods online. The primary reason behind its shift towards online shopping is changing consumer behaviour in India, which has seen digital sales contribute more than 30% of its revenue in the country and target to increase the figure to 40%.
IKEA's sales in India climbed 6% to ₨.1,861 crore (US$ 207 million) in the year that ended. IKEA plans to quadruple its sales in the country and other markets by expanding market penetration, catering to local markets, and increasing the number of IKEA stores in a region. In a pioneering effort that stands to showcase IKEA's global importance, it intends to begin e-business in a new territory prior to inaugurating physical stores. While IKEA is setting up more retail operations in other countries, it also plans to double home production for the Indian market as well as export goods worth a maximum amount of US$ 930 million on a yearly basis. This is a rational strategy adopted by a major global player as it aims at maximizing costs on a global front. Despite challenges like higher tariffs in countries where it exports goods, the IKEA administration is also optimistic about the potential of the Indian market.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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