The Foreign Investment Promotion Board (FIPB), government's single-window body to clear foreign investment proposals, has approved Swedish furniture giant IKEA's proposal to make 100 per cent investment in single-brand retail.

According to the proposal, IKEA will invest Rs 10,500-crore in India's single-brand retail. The figure represents the largest foreign direct investment (FDI) in India's single-brand retail so far.

Sweden-based IKEA Group, which manufactures & sells home and office furniture, will set up twenty-five stores across India through a cent per cent owned subsidiary. The IKEA's proposal to establish stores has already been scrutinized by the Department of Industrial Policy & Promotion in the Commerce & Industry Ministry.

The IKEA's proposal will now require approval from the Cabinet Committee on Economic Affairs because the FIPB can approve investment proposals worth up to Rs 1,200 crore only.

IKEA has become the third foreign retailer after apparel giant Brooks Brothers and British shoemaker Pavers England to get FIPB's approval.

IKEA operates more than 300 stores in as many as 44 countries around the globe. The furniture giant said it would take three years to create a supply chain to roll out its first retail store in India.