Amid a debate over local sourcing conditions for foreign firms to open retail stores in India, Swedish furniture major IKEA says it is better to have “less detailed regulations” as business will eventually go the place that has the best preconditions to do so.
The company, which is slated to open its first store in India next year, however, said it will do whatever it takes to meet the 30 per cent sourcing requirements in India for operating its retail chain.
“Well I am happy about the development which India has taken to enable retailers like us to establish ourself in India and you have 30 per cent rule for sourcing. We will do whatever of course to fulfil that. We see many opportunities that will be good for IKEA and good for India,” IKEA Group President and CEO Peter Agnefjall told the news agency.
When asked if the sourcing conditions are reasonable, he said: “I think, in a way that at the end of day, it’s better for the world for more freedom of trade we can have, and with less detailed regulations, because then the business would end up where you actually have the best preconditions to do so.”