Ikea is increasing its sourcing from India to 50% for its domestic retail operations, up from the current 30%, as part of a broader push to deepen its supply base in the country. The Swedish home furnishings giant also sources around €400 million worth of goods annually from India for its global operations, placing the country among its top 10 sourcing markets.
The company plans to expand its product categories sourced from India to include sofas, mattresses, and storage furniture, building on its existing base of textiles, plastics, and metals. The expansion is designed to support both local retail growth and meet international supply requirements.
Ikea has been working with Indian suppliers for more than 50 years and has grown its footprint in the country with retail stores in Hyderabad, Navi Mumbai, and Bengaluru, with further locations under development, including in the Delhi NCR region.
The sourcing strategy also aligns with IKEA’s sustainability goals. The company collaborates with over 110,000 farmers in India to produce sustainable cotton using reduced pesticides, fertilisers, and water, helping improve yields and farmer income. Ikea reports around 100,000 employees at direct supplier sites in India, and a further 270,000 at tier-2 suppliers.
This move aligns with the group’s long-term emissions reduction strategy, which aims to cut emissions by half by 2030 and achieve net-zero by 2050. India’s growing manufacturing ecosystem and expanding retail potential remain central to Ikea’s global operations and sustainability roadmap