India has become a focus market for Swedish home decor and furniture giant IKEA, which plans to increase local sourcing from 30 percent to 50 percent for its domestic retail operations. The move will also support global supply chains and is expected to generate significant employment across the value chain, said Christina Niemelä Ström, Head of Sustainability for Supply at Inter IKEA Group.

India already ranks in the top 10 sourcing countries for IKEA, supplying goods worth around euro400 million (approx. Rs 3,600 crore) annually for its global retail operations. IKEA currently sources textiles, plastics, and metals from India and plans to add categories like sofas, mattresses, and storage furniture. 

India has supplied IKEA globally for over five decades, but the retail foray began in 2018 with stores in Hyderabad, Navi Mumbai, and Bengaluru. New stores, including in Delhi NCR, are in the pipeline. IKEA’s sustainable cotton sourcing involves over 1.10 lakh farmers, improving yields and income while reducing chemical and water use. The company employs over 1,00,000 workers at direct suppliers and 2,70,000 at tier-2 suppliers in India. IKEA aims to halve emissions by 2030 and achieve net-zero status by 2050.