Terming the decision of Swedish furniture maker IKEA to invest Rs 10,500 crore into single retail as "confirmation of investors' confidence in India", Commerce and Industry Minister Anand Sharma today said that many more global companies are likely to follow the suit.
Sharma, who is leading a two-day high-level business delegation to Belgium, said the government is in the process of liberalising foreign investment regime in the country. "It is a confirmation of investors continued confidence in India and its economy and endorsement of our policy. I expect many more such announcements," he told reporters here.
On June 22, IKEA has approached the government with a proposal to invest 1.5 billion euros (Rs 10,500 crore) to set up 25 retail stores in the country. In context of rating actions by global agencies about India, the visiting minister said India's fundamentals are strong and investors have faith in the economy.
"Investors confidence in India, irrespective of countrys rating...without going into merit of their wisdom... fundamentals of our economy are strong and will remain strong," he said, adding said in 2011-12, India received highest ever FDI of USD 50 billion in a single year.
Recently, leading global agencies Standard and Poor's and Fitch have lowered the credit rating outlook to negative. However, their rival Moody's today retained its outlook about India despite challenges like lower GDP growth. "I hope the same confidence continues and I leave it to the wisdom of rating agencies," he added.
The Scandinavian company IKEA through its retail outlets would be selling products like furnitures, blankets, kitchen utensils, bathroom fittings, electrical equipment, tableware, cooking range, toys, leather articles, cosmetics, life style items, consumer electronics and gadgets. Besides, it also proposes to set up restaurants, food mart, nursing home and publications under its brand name.