IKEA To Inject ₹20,000 Crore Into India: Retail Giant Set To Quadruple Sales By 2030

NEW DELHI — In a massive vote of confidence for Asia’s third-largest economy, IKEA has announced it will more than double its investment in India, committing over ₹20,000 crore over the next five years. The aggressive expansion plan aims to transform India into one of the brand’s top global markets, despite recent international trade headwinds and tariff surges.

IKEA India CEO Patrik Antoni revealed on Tuesday, January 20, 2026, that the company intends to quadruple its current sales and drastically scale up its domestic manufacturing footprint to meet surging local demand.

1. The “Digital-First” Expansion Strategy

In a global first for the Ingka Group-owned brand, IKEA is shifting its traditional “big-box” model to a digital-led approach in new territories.

• E-commerce Expansion: IKEA will begin accepting online orders in four new major hubs, including Chennai and Coimbatore, before a brick-and-mortar store ever opens.
• The Logic: This strategy targets young, urban consumers who prefer online shopping to navigating heavy city traffic.
• Physical Footprint: The long-term goal is to grow from a handful of large-format stores to 30 locations across the country.

2. Boosting Local Sourcing and Exports

To mitigate global supply chain risks and leverage India’s manufacturing potential, IKEA is doubling down on “Make in India.”

• Production Hike: The company plans to double its production for both domestic retail and global exports to €800 million.
• Global Hub: As international brands like Asics and VinFast ramp up Indian production, IKEA is positioning India as a critical export hub for its European stores.
• Tariff Resilience: Despite US President Donald Trump’s decision last year to hike tariffs on Indian imports to 50%, Antoni noted that IKEA’s global distribution—focused heavily on Europe—has insulated its Indian suppliers from the brunt of the trade war.

3. Performance Snapshot: August 2025

IKEA’s steady growth in India provides a strong foundation for this new multi-billion dollar investment.

• Annual Sales: ₹1,861 crore (as of year ended August 2025).
• Growth Rate: A 6% year-on-year increase.
• The Goal: Quadruple annual revenue through a mix of small-format urban stores, large suburban warehouses, and a robust e-commerce network.

IKEA India: 5-Year Roadmap