Swedish Giant, Indian Roots – IKEA Expands Local Sourcing for Global Reach

IKEA, Sweden's home furnishings monolith, has set out blueprints to increase India's share of sourcing to 50% from its current 30%. The action is meant to strengthen India's role in global supply chains alongside the promotion of local manufacturing and sustainability.

India's Growing Role in IKEA's Global Business

IKEA has been sourcing from India for five decades with an emphasis on textiles, plastics, and metals.

The firm aims to increase the number of product categories, such as sofas, mattresses, and storage units.

India is currently one of IKEA's top 10 sources, accounting for a major part of its global store retailing operations.

Economic and Employment Impact

The expansion will create additional employment opportunities along the supply chain, favoring local manufacturers and artisans.

IKEA's investment is consistent with India's efforts to raise manufacturing's contribution to GDP, boosting economic growth.

The firm is partnering with more than 110,000 farmers to encourage sustainable cotton cultivation, lowering pesticide and water consumption.

Sustainability and Future Plans

The firm plans to reduce emissions to half by 2030 and net-zero by 2050.

The firm's emphasis on sustainable sourcing provides improved environmental stewardship without increasing costs.

IKEA's future plans also involve building retail centers in urban markets such as Delhi NCR, Pune, and Chennai.

Sources: Business Standard, Rediff Business, Economic Times.