IKEA to Invest $2.2 Billion in India; Launches Online-First Expansion in Tamil Nadu
By Axel Miller | 20 Jan 2026
NEW DELHI — Swedish furniture giant IKEA plans to significantly scale up its Indian operations, aiming to take its total investment in the country to over ₹200 billion ($2.2 billion) over the next five years. The strategy underscores IKEA’s long-term confidence in India as it expands stores, boosts online reach, and deepens local sourcing.
IKEA India CEO Patrik Antoni said the company sees India as a long-term growth market even as global trade conditions remain uncertain.
A pioneering online-first rollout
IKEA is expanding online delivery into several major cities ahead of physical store openings — a shift from its traditional store-first rollout model. The expansion includes Chennai, Coimbatore, Madurai and Salem, as the company targets faster access for consumers and aims to build demand before committing to large-format outlets.
Company executives said the online-first approach allows IKEA to test demand, strengthen brand presence, and optimise logistics in new markets.
Quadrupling revenue and store count
For the financial year ended August 2025, IKEA’s sales in India rose 6% to ₹18.61 billion. The company aims to quadruple revenue in the coming years by expanding its physical store count to 30 from the current six, while increasing online sales contribution from over 30% toward 40%.
Sourcing and export push
Alongside retail expansion, IKEA plans to double production from India for domestic use and exports to about €800 million ($930 million), reflecting India’s growing role as both a consumer market and a sourcing base in global supply chains.
The expansion comes amid rising trade tensions and higher U.S. tariffs on certain Indian goods. However, IKEA executives said the impact on Indian suppliers has been limited, as much of the production supports European and other non-U.S. markets.
Summary
IKEA plans to raise its India investment to over ₹200 billion ($2.2 billion) over the next five years as it expands to 30 stores, increases online penetration, and deepens local sourcing. The retailer is also rolling out an online-first strategy in new cities such as Chennai and Coimbatore, reinforcing India’s growing importance as both a high-growth consumer market and a global manufacturing hub.
FAQs
Q1) How much is IKEA investing in India?
IKEA plans to take its total investment in India to over ₹200 billion (more than $2.2 billion) over the next five years.
Q2) What is new about IKEA’s expansion strategy in India?
IKEA is expanding online delivery to new cities before opening physical stores, shifting from its traditional store-first approach.
Q3) Which cities are included in the new online rollout?
IKEA’s online expansion includes Chennai, Coimbatore, Madurai and Salem.
Q4) How many IKEA stores will India have under the expansion plan?
IKEA plans to expand to 30 stores, up from the current six.
Q5) How did IKEA India perform recently?
For the financial year ended August 2025, IKEA India’s sales rose 6% to ₹18.61 billion.
Q6) How important is online sales for IKEA India?
Online sales already contribute more than 30% of India revenue, and IKEA is targeting an increase toward 40%.
Q7) Is IKEA increasing sourcing and exports from India?
Yes. IKEA plans to double production from India for domestic use and exports to about €800 million ($930 million).
Q8) Have higher U.S. tariffs affected IKEA’s India operations?
According to the company, the impact has been limited, as Indian suppliers primarily serve European and other non-U.S. markets.
