IKEA Supercharges India Sourcing: Local Content to Hit 50%, Global Exports Set to Surge

Unknown Apr 02, 2026 1,150 Views

Swedish furniture giant IKEA is making waves with its latest announcement: a significant increase in sourcing from India. The company plans to ramp up local procurement for its Indian retail operations from 30% to 50%, further establishing India as a key player in its global supply chain. This initiative is expected to create thousands of jobs, broaden product offerings, and enhance sustainable practices throughout its supply chain.

India as a Focus Market:

IKEA has identified India as one of its top 10 sourcing countries, currently procuring around €400 million worth of products annually for global operations. The aim is to double this figure in the coming years.

Local Sourcing Leap:

Over the next five years, IKEA will increase the share of locally sourced products in its Indian retail operations from 30% to 50%, boosting both domestic growth and export potential.

Broader Product Basket:

The company will expand sourcing beyond textiles, plastics, and metals to include high-value items such as sofas, mattresses, and storage solutions, creating new opportunities for Indian manufacturers.

Job Creation:

This sourcing expansion is expected to generate thousands of new jobs. IKEA currently works with nearly 100,000 workers at direct suppliers and 270,000 at tier-2 suppliers in India.

Sustainability Drive:

Indian suppliers have increased their use of renewable electricity from 18% in 2022 to 86% in 2024. IKEA aims to cut emissions by 50% by 2030 and achieve net-zero by 2050.

Support for Farmers:

Over 110,000 Indian farmers are part of IKEA’s sustainable cotton sourcing program, benefiting from higher yields and incomes through eco-friendly farming methods.

Long-Term Commitment:

IKEA has been sourcing from India for nearly 50 years and began retail operations in 2018. The company is expanding rapidly, with new stores planned in Delhi NCR and other cities.

Resilient Supply Chain:

By boosting local sourcing, IKEA aims to reduce reliance on imports, lower logistics emissions, and strengthen its resilience to geopolitical and trade uncertainties.

"India will remain important for us. We grow together. The growth for IKEA in India is also happening when India is growing and developing,” said Christina Niemela Strom, Head of Sustainability for Supply, Inter IKEA Group

Source: The Economic Times, The Hindu Business Line, Fortune India, Business Standard, Times of India, Moneycontrol

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