UP Government Allots 12.3 Acres For Furniture Giant IKEA’s First ‘Meeting Place’

IKEA
Image Source:Treehugger

Swedish furniture giant IKEA’s expansion into India has been a project in making since 2018 with the first store in Hyderabad followed by one in Navi Mumbai in 2020. The latest development in this series comes this Friday with the CM Adityanath’s allotment of 12.3 Acres of land to INGKA Centres India Pvt Ltd, which is a subsidiary of the INGKA group which owns most IKEA stores globally. Negotiations between the company and Noida authority over the plot in Sector 52 began in October 2019 and the deal finalised over a payment of ₹ 850 Crore and stamp duty of ₹ 56 Crore for transfer of land title.

Delhi-ncr is one of the most important markets in india and we are happy to announce the first store here

Quoted IKEA India CEO Peter Betzel in a statement about IKEA developing an anchored retail destination and INGKA’s 45th ‘meeting place’ globally at Noida. Ritu Maheshwari, Noida Authority CEO says that the IKEA centre will rake in investments to the tune of ₹ 5,500 Crore and create 2,000 jobs locally.

Meeting places are an IKEA speciality and first of it’s kind in India which is a mixed-use destination that brings a multitude of individual for multiple reasons, such stores have seen much success in nearby markets such as Europe, Russia, and China. The spokesperson further states-

Noida will be our first such centre in India. the exact offerings will depend on the needs, desires, and aspirations of the local people. the company’s plans are still in development and more details will follow in the coming months.

This land deal also clears the scope of development for an interchange facility between the Noida metro’s Aqua Line and Delhi Metro’s Blue line intersecting at Sector 51 as the plot is netsled between the two exchange corridors.

This development signals India’s proclivity towards globalisation and improving it’s industrial deficits through foreign collaborations. In my opinion this would be a welcome addition to India’s economic efforts particularly when it comes to post-pandemic recoveries. However, the impact of this specific case remains to be seen.