IKEA bets big on India, to lift local sourcing to 50% by 2030
CEO Jesper Brodin acknowledged that the current global tariff environment has created uncertainty, which he expects to persist for a few months.
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IKEA Global CEO Jesper Brodin has said that India is forcing the Swedish home furnishings giant to rethink its product strategy, price points and value offering, as the company accelerates its presence in the country.
Speaking to CNBC-TV18, Brodin acknowledged that the current global tariff environment has created uncertainty, which he expects to persist for “a few months”. While IKEA cannot influence policy, he added, the company is prepared to “work around whatever environment we’re in”.
India, Brodin noted, presents a unique challenge with heightened consumer expectations on price and service, but it is also reshaping IKEA’s global approach.
Currently operating five to six stores in the country, the company plans to accelerate expansion once it scales up to 10–12 outlets.
The world’s largest furniture retailer is also looking at India as more than just a retail market.
It is developing capabilities to expand sourcing from India, which is already an important supplier of textiles and soft toys. About 30% of products sold in India are produced locally, a figure IKEA aims to raise to 50% by 2030, with a sharper focus on furniture production.
Swedish home décor and furniture giant recently announced opening its first offline store in New Delhi at Pacific Mall, Tagore Garden, marking a significant expansion of its India retail footprint.
The announcement followed IKEA’s online debut in the Delhi market earlier this year. The brand, which has been sourcing from India for over five decades, began retail operations in the country in 2018 with its Hyderabad store, later expanding to Navi Mumbai and Bengaluru.
IKEA India recently appointed Patrik Antoni as its new Chief Executive Officer, effective August 2025, succeeding Susanne Pulverer. Under Antoni’s leadership, the company is pursuing an aggressive growth strategy aimed at improving accessibility through compact-format stores in smaller cities.
These smaller outlets, which can be as compact as 10,000 sq. ft., are designed to fit into neighbourhood malls and high streets, enabling IKEA to expand more rapidly, stay agile, and cater to evolving consumer shopping preferences.
With the recent Delhi launch, IKEA is reinforcing its long-term commitment to India, where it sees strong potential for growth in both large metro markets and smaller cities.
Recently, Pooja Grover, IKEA India’s Country Expansion Manager shared plans of entering the next phase of its India expansion by rolling out smaller-format stores, as compact as 10,000 square feet, that can be housed in neighbourhood malls and high-street locations, according to
This multi-format approach marks a significant shift for IKEA, which has so far been known for sprawling megastores spanning over 40,000 square meters. Grover said the move will allow IKEA to scale faster, adapt to local catchment areas and reach more consumers in a cost-efficient manner.
“These formats give us agility and make us more accessible, especially in cities where space is at a premium,” Grover said. “This is a huge shift for us in terms of size and strategy.”
