India panel clears IKEA's investment proposal

Last Updated: Mon, Jan 21, 2013 14:40 hrs

MUMBAI, Jan 21 (Reuters) - India's foreign investment panel has approved Swedish retailer IKEA's 100 billion rupee ($1.86 billion) plan to set up shop in the country, India's trade minister said in a statement late on Monday.

India's finance ministry had previously ruled that the world's largest furniture maker would not be allowed to sell items such as food, textile products and office supplies, as it does in other markets.

However, the company had resubmitted its investment proposal and a government source with direct knowledge of the matter told Reuters on Monday that the Swedish retailer's investment plan had been approved in its entirety.

$1 = 53.8150 Indian rupees) (Reporting by Rajesh Kumar Singh; Editing by Tony Munroe)

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