Swedish furniture retailer IKEA plans to invest over 200 billion rupees ($2.20 billion) in India during the next five years, more than doubling its current commitment as it expands stores and increases local sourcing.

The company, which opened its first Indian outlet in Hyderabad in 2018, will begin accepting online orders in four cities where it currently lacks physical stores, including Chennai and Coimbatore in Tamil Nadu state.

IKEA India chief executive Patrik Antoni told Reuters the retailer aims to grow its store count from six to 30 and quadruple sales from the 18.61 billion rupees reported in the year ending August 2025.

"India is not a large IKEA country yet, but the belief in India is very strong that it will be one of our top markets," Antoni said.

The expansion marks a shift in IKEA's global strategy, with the retailer launching online operations before opening brick-and-mortar stores in new cities for the first time worldwide. Bhavana Jaiswal, country e-commerce integration manager, said the approach reflects younger consumers' preference for shopping online to avoid traffic congestion.

Digital sales already account for over 30 per cent of IKEA's India revenue, according to Antoni, who said the company aims to raise this share to 40 per cent. The retailer also plans to double production for domestic stores and exports to €800 million.

The investment comes as global brands increase export production in India to reduce costs, whilst consumer companies including shoemaker Asics and carmaker VinFast Auto expand sourcing to meet domestic demand. India's appeal as a manufacturing hub has grown despite US President Donald Trump imposing tariffs reaching 50 per cent on certain Indian imports last year, forcing some industries to seek alternative export markets.

Antoni said the tariff measures had not materially affected IKEA's Indian suppliers, noting that with most stores located in Europe, the company ships more production to markets outside the United States. India sales rose 6 per cent in the year ending August 2025, reflecting steady growth in a market the retailer views as strategically significant for long-term expansion.

The announcement contrasts with IKEA's recent decision to close seven stores in China from February 2026, including locations in Shanghai, Guangzhou and Tianjin. The company described those closures as part of an optimisation exercise aimed at improving efficiency across physical and digital channels.

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