Government's single-window body to clear foreign investment proposals , FIPB, on Tuesday cleared Swedish furniture major IKEA's Rs 10,500-crore project, the largest FDI in single-brand retail so far.
The Foreign Investment Promotion Board (FIPB) has approved the proposal of IKEA, Economic Affairs Secretary Arvind Mayaram said after the board meeting.
IKEA Group, which manufactures and sells home and office furnishing products, proposes to invest in single brand retail trading in India through a 100 per cent subsidiary.
IKEA's proposal to set up 25 stores in India has already been scrutinised by the Department of Industrial Policy and Promotion (DIPP) in the Commerce and Industry Ministry.
The proposal will now have to be cleared by the Cabinet Committee on Economic Affairs (CCEA) as the FIPB can clear investment applications worth up to Rs 1,200 crore only.
IKEA's would be the largest investment in the single- brand retailing ever since the government has allowed foreign investment in this sector in January.