The memorandum of understanding (MoU) with Karnataka and Telangana describe the preconditions that IKEA needs in terms of infrastructure, IKEA said in an emailed statement on Thursday.
IKEA India chief executive Juvencio Maeztu told Reuters in a statement that the company had not determined the location of its first stores yet.
"In the first phase we are looking at establishing IKEA stores in Delhi NCR, Mumbai, Bangalore and Hyderabad. We feel very positive about the developments so far, but it is too early yet to say when the first store will open," Mr Maetzu said.
IKEA is one of the first companies to get approval for a 100 per cent foreign direct investment.
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