On November 24th the coalition government, led by the Congress party, said that in cities of over 1m folk, foreign firms could now own 51% of “multi-brand” retailers, such as supermarkets (up from zero), and 100% of single-brand chains (up from 51%).

This is a huge change for IKEA. IKEA has been waiting years for permission to take full ownership of its local operations in India. Take full control will allow IKEA to be more active in its decision-making process and business management. The article also mentioned that Ikea are among the multinational retailers having expressed interest in investing in India if the rules were changed.

Source: http://www.nytimes.com/2011/11/25/business/global/india-to-allow-foreign-retailers-to-own-stores.html?_r=0


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