Finance
IKEA plans to double India investment to more than $2.20 billion over five years
Published by Global Banking and Finance Review
Posted on January 20, 2026
2 min readLast updated: January 20, 2026
Quick Summary
IKEA will double its India investment to over $2.20 billion, expanding stores and online sales, aiming for 40% online sales share.
IKEA plans to double India investment to more than $2.20 billion over five years
IKEA's Strategic Investment in India
By Praveen Paramasivam
Expansion Plans and Online Sales
CHENNAI, Jan 20 (Reuters) - Sweden's IKEA will more than double its investment in India to over 200 billion rupees ($2.20 billion) in the next five years as the furniture retailer plans to open more stores and increase sourcing locally, a top executive said on Monday.
Impact of Global Trade Policies
IKEA, which opened its first India store in 2018 in the southern city of Hyderabad, will begin accepting online orders in four other cities where it currently does not have a physical presence, including Chennai and Coimbatore, in Tamil Nadu state.
"(India) is not a large IKEA country yet ... But the belief in India is very strong that it will be one of our top markets," said Patrik Antoni, CEO of IKEA India, in an interview with Reuters.
The retailer's India sales rose 6% to 18.61 billion rupees in the year ended August 2025, and Antoni said it plans to quadruple it, including by expanding store count to 30 from six.
The company plans to start online operations before opening a brick-and-mortar store in new cities — a first for IKEA globally — as young consumers shop online more to beat traffic, said Bhavana Jaiswal, country e-commerce integration manager.
Its online sales account for over 30% of the total India sales. The retailer aims to raise the share to 40% of total sales.
IKEA will also double production for domestic stores and exports to 800 million euros ($930 million), said Antoni.
The company's move comes as global brands ramp up export production in India to cut costs, while consumer majors from shoemaker Asics to carmaker VinFast Auto also step up sourcing to meet domestic demand.
U.S. President Donald Trump doubled tariffs on imports from India to as much as 50% last year on some goods, forcing many industries to find new clients in other countries.
Antoni, however, said it has not affected IKEA's Indian suppliers much, as the brand, which has most of its stores in Europe, ships more to other markets.
($1 = 0.8602 euros)
($1 = 90.8600 Indian rupees)
(Reporting by Praveen Paramasivam in Chennai; Editing by Harikrishnan Nair)
Key Takeaways
- •IKEA plans to double its India investment to over $2.20 billion.
- •The company aims to expand its store count from six to 30.
- •IKEA will increase online sales to 40% of total India sales.
- •Production for domestic stores and exports will double.
- •IKEA's India sales rose 6% to 18.61 billion rupees in 2025.
Frequently Asked Questions about IKEA plans to double India investment to more than $2.20 billion over five years
1What is local sourcing?
Local sourcing refers to the practice of obtaining goods and services from local suppliers rather than from distant or international sources, which can reduce costs and improve supply chain efficiency.
2What is online retail?
Online retail is the selling of goods and services over the internet, allowing consumers to purchase products from the comfort of their homes using various digital platforms.
3What is investment?
Investment is the allocation of resources, usually money, to generate income or profit. It can involve purchasing assets such as stocks, bonds, or real estate.
4What is a business expansion?
Business expansion refers to the growth of a company through increased production, opening new locations, or entering new markets to increase revenue and market share.
