Definition of SME may be tweaked to allow investment from IKEA
06 Aug 2012
The Indian government might change the definition of small and medium enterprises (SME) to facilitate investments from Swedish furniture giant IKEA, according to commerce and industry minister Anand Sharma.
Sharma who is on an official visit to Sri Lanka told reporters that the definition of SME may require to be changed.
He was responding to questions whether the Indian government would tweak policy to allow the company to make investments in the country.
The company, which is also the world's largest furniture maker, has announced a $1.9 billion investment for opening 25 retail stores in India.
It has, however, been pressing for changes in regulation ahead of making actual investment, calling for a change in definition of SMEs.
The current norm allows firms with an investment of upto $1 million to be considered SMEs. In the event of IKEA opening its store in India, it would be required to source a particular amount of materials from small and medium enterprises.