India has steadily climbed the ranks to become one of IKEA’s key sourcing partners — and now, the Swedish home furnishing giant is doubling down on its commitment to the country. The company plans to raise the share of locally sourced products for its Indian retail operations from the current 30% to 50%, while also scaling up exports from India for its global supply chain.
“This isn’t just about buying more from India,” said Christina Niemelä Ström, Head of Sustainability for Supply at Inter IKEA Group. “It’s about building deeper partnerships, expanding the product range we source here, and supporting local communities through job creation.”
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At present, IKEA sources roughly €400 million worth of products from India each year, making it one of the top ten countries in its global procurement network. The current portfolio includes textiles, plastics, and metals — but that’s about to broaden. IKEA now plans to add larger categories such as sofas, mattresses, and storage units to its India-made product lineup.
Ström noted that India’s role is expanding on two fronts: helping meet the demand from Indian customers through higher local sourcing, and supporting global retail operations through exports. “The idea is to grow together,” she explained. “As India grows, so do our opportunities to collaborate and invest further.”
Although IKEA only entered the Indian retail market in 2018 with its first store in Hyderabad, it has had manufacturing and sourcing ties with the country for over 50 years. Since then, it has launched stores in Navi Mumbai and Bengaluru, with additional locations in Delhi-NCR and other cities under development.
“We’ve had a long-standing relationship with India — one we’re proud of. It’s not a short-term play for us,” said Ström. “We’re here for the long run and we believe deeply in what India has to offer.”
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Sustainability is also a key pillar of IKEA’s India strategy. The company currently works with over 110,000 farmers to grow cotton using fewer pesticides, less water, and more eco-friendly practices — efforts that, Ström pointed out, help both the planet and the farmers’ incomes. “This isn’t a trade-off between cost and sustainability. It’s a win-win.”
Through its supply chain in India, IKEA directly supports around 100,000 workers at its supplier sites and another 270,000 indirectly through second-tier suppliers. Most of the cotton used in IKEA products today is sourced through certified schemes, ensuring it meets the company’s strict sustainability standards.
As part of its global climate goals, IKEA is aiming to cut its emissions by 50% by 2030 and reach net-zero status by 2050.
The Inter IKEA Group, which includes the global franchisor Inter IKEA Systems BV as well as the product development and supply arms, is the backbone that links the brand’s global franchisees with its manufacturing and sourcing network. And with India stepping into an even more central role, that backbone just got a bit stronger.
