Well, at least one retailer is making some progress in expanding into India.
IKEA has signed agreements with the states of Karnataka and Telengana to open stores there, making the global home furnishings giant one of the first companies to be approved for a 100 percent investment in the country, Reuters says.
Exact locations for the stores have not yet been determined, IKEA India Chief Executive Juvencio Maeztu told Reuters.
"In the first phase we are looking at establishing IKEA stores in Delhi NCR, Mumbai, Bangalore and Hyderabad. We feel very positive about the developments so far, but it is too early yet to say when the first store will open," Maetzu said.
IKEA has an advantage over other many other retailers looking to expand in India – it sells only its own branded product. FDI remains controversial, and earlier this month, Commerce and Industry Minister Nirmala Sitharaman said that FDI will not be allowed for multi-brand retailers. However, foreign multi-brand retailers can own 51 percent of a company.
Why go through all this trouble? An emerging middle class that is expected to reach 200 million by 2020 and 475 million by 2030 according to Ernst & Young.
But as always with politics, this seems to be a constantly changing situation, and it will be interesting to watch it evolve.
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