The Foreign Investment Promotion Board (FIPB), the government's single-window agency to look into overseas investment proposals, Tuesday approved Swedish furniture giant IKEA's plan to invest Rs.10,500 crore in single-brand retail business in India.
Talking to reporters after an FIPB meeting, Economic Affairs Secretary Arvind Mayaram said the board has cleared the investment proposal by the Swedish firm.
Now the Cabinet Committee on Economic Affairs will examine the proposal and take a final call.
FIPB can clear investment proposals worth up to Rs.1,200 crore. As IKEA's planned investment is higher than this, the proposal has to be cleared by the cabinet.
IKEA, the world's largest furniture maker, proposes to invest $1.9 billion (Rs.10,500 crore) in India through a 100 percent owned subsidiary for opening 25 retail stores across the country.
This will be one of the biggest investments in India in single-brand retail sector.
The Indian government recently hiked the overseas investment limit in India's single-brand retail business to 100 percent from the earlier limit of 51 percent.