Taking recent developments related to single brand foreign direct investment (FDI) in retail positively, Swedish furniture retailer IKEA has announced its plan to open its stores in India.

Last month, the government of India relaxed rules on sourcing from local suppliers to encourage foreign investors to invest in the country.

IKEA said in an emailed statement that it had already filed application to start trading in India - the second most populous country of the world, after China.

Confirming its plans to open its first stores in India, the Swedish retailer said, "Once our application is approved we will develop a solid plan for the establishment of IKEA stores for many years to come."

The government of India opened the economy to foreign retailers in January, but added a condition that foreign companies would have to source 30 per cent of their products from small & medium-sized domestic firms. The condition encountered severe disapproval from foreign companies. Last month, the government ditched the condition.

IKEA is well-known for budget furniture in self-manufactured flat packs and enormous stores. The privately held group operates 338 stores around the globe, of which 298 are operated by IKEA Group and the other by outer franchisees.