STOCKHOLM, Sweden, Jan. 23 (UPI) -- Swedish retail giant IKEA said its plans to open stores in India are now on hold.
IKEA has been waiting on the sidelines. Until this month, India would only permit foreign single-brand stores if they were no more than 51 foreign-owned.
As of this month, the rules changed. Single-brand retailers that are 100 percent foreign-owned can now operate in India, The Local reported Monday.
But there's a catch. Single-brand retailers, such as IKEA that sell only IKEA products, need to use India as the source for 30 percent of their merchandise.
"We are patient because the conditions need to be right. In this sector, when everything seems to be OK, then we will be in," IKEA Chief Executive Officer Mikael Ohlsson said.
"We have always been cautious. Now we will take a step-by-step investment in existing stores."
In the meantime, Ikea has plans to double the amount of Indian sources it uses to about $1.3 billion within three years, the newspaper said.
