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India to lift restrictions on IKEA's product range: report

India to lift restrictions on IKEA's product range: report

IKEA will be permitted to sell non-furniture items and run cafes in India, Commerce and Industry Minister Anand Sharma was quoted as saying in a newspaper, removing a sticking point on the Swedish retailer's plans to enter the country.

"IKEA's proposal based on its global model, which includes cafeterias, will be approved," Mr Sharma was cited as saying.

The Finance Ministry had previously ruled that the world's largest furniture maker would not be allowed to sell items, including textile products and office supplies, as it does in other markets, according to recent reports.

The government has presented IKEA's long-mooted entry into India's retail market as a sign that foreign investors have kept faith with Asia's third-largest economy, at a time when gross domestic product growth in the country has declined.

IKEA could not be immediately reached for comment by Reuters.

Copyright @ Thomson Reuters 2013