Panel clears IKEA's investment proposal

India's foreign investment panel has approved Swedish retailer IKEA's 100 billion rupee plan to set up shop in the country, the trade minister said in a statement late on Monday.

The finance ministry had previously ruled that the world's largest furniture maker would not be allowed to sell items such as food, textile products and office supplies, as it does in other markets.

However, the company had resubmitted its investment proposal and a government source with direct knowledge of the matter told Reuters on Monday that the Swedish retailer's investment plan had been approved in its entirety.

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