Swedish based fashion retailer H&M has filed an application to India’s Foreign Direct Investment Board, which upon approval could see 50 H&M stores open in the country. The company is prepared to spend an initial $130 million on the venture.
With a growing middle class, many companies are looking to India as solid investment as the country is allowing for more foreign competition in its markets. Furniture brand Ikea has recently begun the approval process that will see them set up shops in the country soon, with the agreement that Ikea won’t be selling food as they do in many of their stores. Big box retailer Walmart is currently trying to gain access to the country, but has had no luck so far.
The new investments will be a good thing for India with Indian retail consultancy Technopak predicting the textile and clothing market in the country would more than double to $141 billion by 2021, from $58 billion in 2012.