Global furniture giant IKEA has announced a fresh strategy for India, marking the second wave of growth focused on increasing local sourcing and supply chain integration. After establishing large-format stores and digital platforms in its first phase, the Swedish retailer now plans to expand sourcing partnerships with Indian manufacturers, supporting both domestic sales and global exports. This pivot reflects confidence in India’s consumer demand story and its role as a competitive manufacturing hub.
Second Growth Wave Strategy
IKEA is shifting its India focus from store-led expansion to supply chain strengthening.
The company will deepen partnerships with Indian suppliers, sourcing a larger share of furniture, textiles, and home accessories locally.
This strategy supports IKEA’s global goal of 50% climate-positive sourcing by 2030.
Strengthening the Supply Chain
India is being positioned as a sourcing and logistics hub for both domestic retail and exports to other markets.
IKEA already sources handmade textiles, handicrafts, and modular furniture from Indian firms.
The new strategy will expand into sustainable raw materials, renewable energy adoption, and circular economy practices.
Market Growth in India
India’s middle-class expansion, rising disposable incomes, and urban housing boom are driving higher demand for affordable home solutions.
IKEA aims to double its India footprint through digital-first retail, smaller city formats, and back-end supply chain efficiencies.
Alignment with Government Policies
The move aligns with the Indian government’s Make in India and Atmanirbhar Bharat initiatives by:
Creating jobs in manufacturing and logistics.
Boosting exports through global supply chains.
Supporting local suppliers with technology transfer and design expertise.
Why This Matters
Boosts Local Manufacturing: Strengthens India’s role in global value chains.
Job Creation: Expands opportunities in furniture, textiles, and logistics sectors.
Consumer Access: Local sourcing could lower prices and improve availability for Indian customers.
Export Advantage: Positions India as a key supply hub in IKEA’s international network.
Policy Alignment: Reinforces Make in India and self-reliance objectives.
