States must follow Centre reforms: IKEA India chief

Swedish furnishing major Ikea wants states to go on a reform spree. Speaking at the Economist India Summit on Wednesday, IKEA country head Juvencio Maeztu said that reforms taken by the Centre should be taken forward by states to help businesses.

State governments needed to work on better facilitation of ease of doing business as had been done by the central government through the passing of the goods and services tax (GST) Bill, Maeztu said.

Pointing out that a large number of daily challenges for a company represent local issues, Maeztu added that the global furniture retailer has had to face land and labour problems in India. "The retail sector needs better land regulations."

Praising the central government's efforts to attract investments through the Make in India campaign, Maeztu made a case for improving policies in the operational part of business as well.

He listed keeping a high level of competence against high competition as a challenge for the company in India.

Ikea recently started work on its first store in Hyderabad, which is slated to open by the end of 2017. The store is set to have around 500 employees, Maeztu had said earlier. Stores are also being planned in Mumbai, Bengaluru and national capital region. The company wants to set up 25 stores by 2025 across the country.

IKEA is the world's largest home furnishing retailer, with 135,000 co-workers and operations in 43 countries. The company received government approval to start operations in the country in 2013.

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel