IKEA To Increase India Local Sourcing To 50%; Strengthen Global Supply Links

IKEA has announced plans to increase local sourcing in India from 30% to 50% for its domestic retail operations, which will also enhance sourcing for its global operations, according to a top executive.

India is now a key market for the Swedish furniture giant.

Christina Niemela Strom, Head of Sustainability for Supply at Inter IKEA Group, said the decision would create more jobs across the supply chain. It will also help the company meet growing demand locally and internationally.

“India is in the top 10 of our sourcing countries,” said Strom. IKEA currently sources products worth around €400 million from India for its global operations.

It now aims to add sofas, mattresses, and storage furniture to the sourcing basket, which already includes textiles, plastics, and metals.

Wider Impact On Jobs & Retail

The increased IKEA India local sourcing will support both job creation and retail growth.

“We want to develop more product categories in India,” Strom said. “This will help us serve Indian and global customers and create more jobs in the supply chain.”

Europe remains IKEA’s largest supplier base, followed by the Americas and Asia, led by China. IKEA has been sourcing from India for over 50 years.

However, it started retail operations only in 2018, with stores in Hyderabad, Navi Mumbai, and Bengaluru. New stores in Delhi NCR are under development.

Sustainable Cotton & Long-Term Plans

Strom confirmed IKEA’s long-term commitment to India.

“We have had a love affair with India,” she said. “India will remain important for us.”

IKEA is working with 1.1 lakh farmers in India to adopt sustainable cotton farming. The effort helps reduce pesticide, fertiliser, and water use.

Strom said this improves yields and increases farmer income without raising costs.

The company employs nearly 1 lakh people as direct suppliers in India. Another 2.7 lakh work at tier-2 suppliers.

The group aims to cut emissions by half by 2030 and become net-zero by 2050.

Inter IKEA Group connects franchisees with suppliers and develops the global product range. The increased IKEA India local sourcing reflects its strategic focus on India and its commitment to sustainable growth.

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