UP government's latest MoU with IKEA to usher in huge investments!

The state government in Uttar Pradesh has been committed to initiatives aimed at garnering investments that can boost the industry and manufacturing. Expanding its plans, the Uttar Pradesh administration has entered into an agreement with IKEA, the global giant in the retail of furniture and home appliances. With a proposed investment of ₹ 5,500 crores to flow during the next 5 years, the world's largest dealer of furnishing is all set to establish its new centre in Noida.

Proposals for setting up centres in three other UP districts too

[rebelmouse-proxy-image https://media.rbl.ms/image?u=%2Fmax%2F560%2F1%2A00Rsav1eYps_ZsX9-4RPYQ.jpeg&ho=https%3A%2F%2Fmiro.medium.com&s=916&h=cc44b6423a8b63b4091f37f4ce70557a37a909db97cf4b302f8d546f6b44dcb9&size=980x&c=3086424895 photo_credit="miro.medium.com" dam="0" pin_description="" photo_credit_src="https://miro.medium.com/max/560/1*00Rsav1eYps_ZsX9-4RPYQ.jpeg" crop_info="%7B%22image%22%3A%20%22https%3A//media.rbl.ms/image%3Fu%3D%252Fmax%252F560%252F1%252A00Rsav1eYps_ZsX9-4RPYQ.jpeg%26ho%3Dhttps%253A%252F%252Fmiro.medium.com%26s%3D916%26h%3Dcc44b6423a8b63b4091f37f4ce70557a37a909db97cf4b302f8d546f6b44dcb9%26size%3D980x%26c%3D3086424895%22%7D" expand=1] miro.medium.com

Expected to be one of the largest outlets of IKEA, the Noida project has already received an allocation of 50,000 square metres of land. For the procurement of this area, the company incurred a cost of ₹ 850 crores, profiting the state government with revenue of ₹ 60 crores as the stamp duty. The Memorandum of Understanding was materialised on Friday in the presence of the state's Chief Minister.

Having 433 centres in 52 countries across the globe, IKEA is eyeing a big project in the state marked by huge investments. Next to Noida, the global market leader would also open 3 stores in Purvanchal and Central UP, plans for which shall be settled after the inauguration of this first centre.

It is estimated that all the new stores will be operational by 2025. If the experts are to believed, IKEA shall create a network of franchises and showrooms in different cities besides using online platforms of sale. Previously, Uttar Pradesh had witnessed another agreement between the government and IKEA that promised an investment of ₹ 5,000 crores for projects across different cities of the state.

Boosting trade and employment in the state

[rebelmouse-proxy-image https://media.rbl.ms/image?u=%2Fsites%2Fdefault%2Ffiles%2F2021%2F02%2F19%2F918191-ikeanoida.jpg&ho=https%3A%2F%2Fenglish.cdn.zeenews.com&s=86&h=c32de63c53be51c1d921fce34339902b8183b8ad51e7f8dd61dbea2f371e92fc&size=980x&c=4145567440 photo_credit="english.cdn.zeenews.com" dam="0" pin_description="" photo_credit_src="https://english.cdn.zeenews.com/sites/default/files/2021/02/19/918191-ikeanoida.jpg" crop_info="%7B%22image%22%3A%20%22https%3A//media.rbl.ms/image%3Fu%3D%252Fsites%252Fdefault%252Ffiles%252F2021%252F02%252F19%252F918191-ikeanoida.jpg%26ho%3Dhttps%253A%252F%252Fenglish.cdn.zeenews.com%26s%3D86%26h%3Dc32de63c53be51c1d921fce34339902b8183b8ad51e7f8dd61dbea2f371e92fc%26size%3D980x%26c%3D4145567440%22%7D" expand=1] english.cdn.zeenews.com

What constitutes the best part of these developments, is the expected boom in employment opportunities. Ushering in 50,000 opportunities for employment in the direct and indirect sector during the next five years, IKEA shall surely help the state in multiple ways. Additionally, with increasing employment avenues for local craftsmen, artists and workers, the latest project shall propel the local ecosystem too.

IKEA launched its maiden store in Hyderabad at a cost of ₹ 700 crores in 2016. Now, as the company plans to launch an aggregate of 25 centres in India by 2025 with investments of ₹ 10500 crores, it is noteworthy that nearly 50% of this shall accrue to Uttar Pradesh singularly.