IKEA to Double India Investment to $2.2 Billion in 5 Years, Expand Stores, Online Reach, and Local Sourcing
Sweden’s IKEA plans to more than double its investment in India to over 200 billion rupees (around $2.2 billion) over the next five years, as it prepares to expand both its physical retail footprint and its online presence across the country. A top executive said the company is confident India will grow into one of IKEA’s biggest markets globally.
IKEA opened its first Indian store in Hyderabad in 2018. Since then, it has steadily grown its presence and demand in the market. Now, it is preparing for a fresh expansion drive that includes new cities, more customers, and greater local manufacturing support.
Online expansion into new cities
A major part of IKEA’s plan is to start accepting online orders in four new cities where it does not currently have physical stores. These include Chennai and Coimbatore in Tamil Nadu. This allows IKEA to test demand and build customer reach before investing in large store infrastructure in these areas.
IKEA leaders also said this “online first” push in new markets is a global first for the brand. The strategy reflects how younger consumers increasingly prefer shopping digitally, especially to avoid traffic and time-consuming store visits.
Store expansion plan: aiming for 30 stores
IKEA India CEO Patrik Antoni said India is still not a large IKEA country yet, but the company believes strongly in the long-term opportunity. The retailer wants to grow aggressively and has shared an ambition to expand to 30 stores in India.
The goal is also to scale revenue rapidly. IKEA’s India sales increased 6% to 18.61 billion rupees in the financial year ending August 2025, and Antoni said the company plans to quadruple this over time with expansion and stronger reach.
Bigger sourcing and exports from India
Alongside store growth, IKEA also plans to strengthen production and sourcing in India. The company intends to double production for domestic stores and exports to 800 million euros (about $930 million). This reinforces India’s role as a cost-effective sourcing hub for the brand’s global supply chain.
Why global brands are leaning more on India
The report notes that many international brands are increasing production and sourcing from India to reduce costs and supply chain dependence elsewhere. At the same time, several companies are also increasing their sourcing to meet domestic Indian demand.
Tariffs and supply chain impact
The report also mentions higher US tariffs on Indian imports in some categories. However, IKEA said this has not significantly affected its Indian suppliers because IKEA’s largest store base is in Europe, and most exports from India are shipped to other markets.
Bottom line: IKEA’s next five years in India will focus on faster expansion, stronger online growth in new cities, and deeper local sourcing, with the company positioning India as both a major consumer market and a global manufacturing base.
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