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After the GDP base year revision on February 27, Nageswaran raised India’s FY27 GDP forecast to 7-7.4% from 6.8-7.2% View More

India's government is ensuring sufficient petrol and diesel supplies. Domestic LPG deliveries are proceeding normally. Commercial LPG availability is increasing. States are holding daily briefings to combat misinformation. Refinery operations are boosted, and crude oil inventories are healthy. Measures are in place to keep fuels within the country. Enforcement actions are targeting hoarding. View More

As tensions continued to escalate in West Asia on Saturday, the Centre attempted to calm nerves as it said petrol and diesel stocks are adequate across all retail outlets, while domestic LPG distribution continues normally, with over 54 lakh cylinders delivered in a single day. Commercial LPG availability has been ramped up to 70% of pre-crisis levels, with 33,781 metric tonnes already lifted by businesses since March 14. To counter panic buying and misinformation, states have been urged to hold daily briefings - 14 states and Union Territories have already begun doing so. Follow live news updates from the West Asia war In a press release from the Ministry of Petroleum and Gas, the government informed that it has stepped up refinery operations to maintain high output levels, supported by adequate crude inventories . Domestic LPG production has been increased to cushion supply shocks, while fiscal and regulatory measures have been deployed to retain fuels within the country. Excise duty on petrol and diesel has been cut by Rs 10 per litre, and export levies imposed on diesel and aviation turbine fuel to discourage outbound shipments. Live Events In addition, the PM Modi-led Centre has also moved to manage demand. Also Read | Two India-bound LPG tankers crossing Strait of Hormuz out of Gulf, data shows Booking intervals for LPG cylinders have been extended, and consumers are being encouraged to shift to alternatives such as piped natural gas (PNG), electric cooktops and other fuels. Additional kerosene allocations have been approved for states to ease pressure on LPG demand. Enforcement action has intensified, with nearly 2,900 raids conducted to curb hoarding and black marketing, alongside inspections of fuel outlets and distributors, the press release noted. Gas transition accelerates The crisis has also accelerated India’s push towards a gas-based economy. The Centre has prioritised uninterrupted supplies for households and transport, while capping industrial and commercial gas usage at around 80% of normal consumption. City gas distribution (CGD) networks are being expanded on a fast-track basis, backed by policy relaxations, faster approvals, and incentives for new PNG connections. A new regulatory framework notified under the Essential Commodities Act aims to streamline pipeline expansion and remove bottlenecks in land access, while even defence land has been opened up temporarily for pipeline infrastructure. Also Read | Two Indian LPG vessels reach Gujarat's Vadinar Terminal via Strait of Hormuz Authorities have also directed CGD operators to rapidly connect institutions such as hostels, community kitchens and schools where pipeline access is feasible. At the same time, state governments have been tasked with strengthening on-ground monitoring - setting up control rooms, conducting inspections, and cracking down on violations. The Centre has further continued to urge citizens to avoid panic buying, rely on official information, and conserve energy. Two more LPG tankers head for India Meanwhile, two liquefied petroleum gas (LPG) tankers, BW Elm and BW Tyr, are crossing the Strait of Hormuz en route to India, according to ship-tracking data from LSEG and Kpler accessed by Reuters, in a cautious resumption of movement through a corridor hit by the U.S.-Israeli war against Iran. Tehran has said “non-hostile vessels” may transit if they coordinate with its authorities. The two India-flagged vessels have now entered the eastern stretch of the strait after crossing the Gulf, even as shipping through the route remains severely restricted. The movement is part of India’s effort to gradually clear stranded cargo. Four LPG carriers - Shivalik, Nanda Devi, Pine Gas and Jag Vasant - have already exited the zone, but 20 Indian-flagged ships, including five LPG vessels, remain stuck in the Gulf, officials said. Tankers such as Jag Vikram, Green Asha and Green Sanvi are still positioned in the western Strait of Hormuz, underlining persistent bottlenecks. The disruption comes as India grapples with one of its worst gas supply crunches in decades. The country consumes over 33 million metric tonnes of LPG annually, with imports meeting about 60% of demand - nearly 90% sourced from the Middle East. Supplies to industry have already been curtailed to safeguard household cooking fuel, while empty vessels in the Gulf are being loaded to optimise outbound movement. .Pbanner{display:flex;justify-content:space-between;align-items:center;background-color:#ec1c40;margin-top:20px;padding:5px 10px;border-radius:4px;color:#fff;line-height:10px;} .Pbannertext{display:flex;align-items:center;font-size:16px;font-weight:600;font-family:'Montserrat';} .Pbannertext img{height:20px;margin:0 6px} .Pbannerbutton a{display:flex;align-items:center;background-color:#fff;color:#ec1c40;text-decoration:none;font-weight:600;padding:4px 8px;border-radius:6px;font-size:15px;font-family:'Montserrat';} .Pbannerbutton img{height:20px;margin-right:6px} .Pbannerbutton a:hover{background-color:#f7f7f7} Add as a Reliable and Trusted News Source Add Now! (You can now subscribe to our Economic Times WhatsApp channel) (You can now subscribe to our Economic Times WhatsApp channel)

The scope of work includes manufacturing, supply, commissioning, and performance testing of the boiler package, the statement said View More

Thermax's subsidiary, TBWES, has secured a significant Rs 1,600 crore order. This order is for a boiler package supply for a 1x800 MW ultra-supercritical thermal power plant. The scope includes manufacturing, supply, commissioning, and performance testing. This marks a major achievement for Thermax in large-scale energy solutions. View More

New Delhi, Thermax on Saturday said its subsidiary Thermax Babcock & Wilcox Energy Solutions ( TBWES ) has secured a boiler package supply order worth approximately Rs 1,600 crore for an ultra-supercritical thermal power project . TBWES has secured the Rs 1,600 crore boiler package supply order valued from a leading thermal power projects company in Central India for a 1x800 MW ultra-supercritical thermal power plant, according to a company statement. The scope of work includes manufacturing, supply, commissioning, and performance testing of the boiler package, the statement said. "This order marks a significant breakthrough for Thermax and reinforces our proven capabilities in large-scale energy solutions. We thank our customer for their trust in Thermax and look forward to delivering this project with accelerated timelines and successful execution," said Ashish Bhandari , MD & CEO, Thermax, in a statement. TBWES provides equipment and solutions for generating steam for process and power through the combustion of various solid, liquid and gaseous fuels, as well as through heat recovery from turbine/engine exhaust and (waste) heat recovery from industrial processes. Live Events TBWES also offers heaters for various applications in the chemical, petrochemical and refinery segments. Its services arm offers renovation and modernisation solutions for old boilers and heaters. .Pbanner{display:flex;justify-content:space-between;align-items:center;background-color:#ec1c40;margin-top:20px;padding:5px 10px;border-radius:4px;color:#fff;line-height:10px;} .Pbannertext{display:flex;align-items:center;font-size:16px;font-weight:600;font-family:'Montserrat';} .Pbannertext img{height:20px;margin:0 6px} .Pbannerbutton a{display:flex;align-items:center;background-color:#fff;color:#ec1c40;text-decoration:none;font-weight:600;padding:4px 8px;border-radius:6px;font-size:15px;font-family:'Montserrat';} .Pbannerbutton img{height:20px;margin-right:6px} .Pbannerbutton a:hover{background-color:#f7f7f7} Add as a Reliable and Trusted News Source Add Now! (You can now subscribe to our Economic Times WhatsApp channel) (You can now subscribe to our Economic Times WhatsApp channel)

The government has reduced excise duty on petrol and diesel by ?10 per litre. This move aims to protect oil companies from losses due to high global oil prices. Export duties have also been imposed on diesel and aviation fuel. These measures ensure domestic availability of fuel. The government anticipates significant revenue changes from these fiscal adjustments. View More

New Delhi: The Centre has cut excise duty on petrol and diesel by ₹10 per litre to shield refiners from losses amid rising global oil prices due to the Iran war. Pump prices will remain unaffected. The government has also imposed export duties of ₹21.5 per litre on diesel and ₹29.5 per litre on aviation turbine fuel (ATF) to discourage private refiners from diverting supplies entirely to the highly lucrative export market and to keep domestic markets supplied. Such measures were first introduced in the early days of the Russia-Ukraine war four years ago. Central taxes, including excise duty and cess, have now fallen to ₹11.9 per litre for petrol and ₹7.8 per litre for diesel. At current rates of local sales and exports, the government will lose ₹7,000 crore in a fortnight due to the duty cut and gain ₹1,500 crore from the export tax, Central Board of Indirect Taxes and Customs chairman Vivek Chaturvedi said. This translates into an annual revenue loss of ₹1,82,500 crore from duty cuts and a gain of ₹39,100 crore from export taxes. Export tax will be reviewed every fortnight, Chaturvedi said. Oil minister Hardeep Singh Puri in an X said the government has taken a huge hit on its taxation revenues to reduce high losses of oil companies “at this time of sky-high international prices are reduced.” The minister estimated losses of oil marketing companies at “approximately ₹24 per litre for petrol and ₹30 per litre for diesel.” Live Events Since the beginning of the Iran war a month ago, rising crude prices and a weakening rupee have increased procurement costs for Indian refiners, who have not been able to raise pump prices. Brent has averaged $95 per barrel in March, up from $69 in February, while the rupee has fallen to 94.8 against the dollar, from 91.07 before the war. Nayara Energy, a private sector refiner with about 7% of the country’s petrol pumps, raised retail prices on Thursday, effectively shutting out consumers from its outlets. Nayara is also planning a maintenance shutdown next month. Sujata Sharma, joint secretary in the petroleum ministry, did not provide details on handling the likely consequences of Nayara’s price increase, which could shift demand to state-run fuel retailers. .Pbanner{display:flex;justify-content:space-between;align-items:center;background-color:#ec1c40;margin-top:20px;padding:5px 10px;border-radius:4px;color:#fff;line-height:10px;} .Pbannertext{display:flex;align-items:center;font-size:16px;font-weight:600;font-family:'Montserrat';} .Pbannertext img{height:20px;margin:0 6px} .Pbannerbutton a{display:flex;align-items:center;background-color:#fff;color:#ec1c40;text-decoration:none;font-weight:600;padding:4px 8px;border-radius:6px;font-size:15px;font-family:'Montserrat';} .Pbannerbutton img{height:20px;margin-right:6px} .Pbannerbutton a:hover{background-color:#f7f7f7} Add as a Reliable and Trusted News Source Add Now! (You can now subscribe to our Economic Times WhatsApp channel) (You can now subscribe to our Economic Times WhatsApp channel)

The government has imposed export duties on diesel and turbine fuel to boost domestic availability and energy security, estimating Rs 1,500 crore in revenue. Simultaneously, special excise duties on petrol and diesel were reduced to shield consumers, keeping retail prices stable amid global oil supply concerns. View More

India takes a huge tax revenue hit as it cuts fuel excise duties to shield consumers from soaring oil prices caused by the Iran war. View More

In this articleHSBCFollow your favorite stocksCREATE FREE ACCOUNT People stand in a queue to refill fuel at a gas station in Guwahati, India, on March 26, 2026.David Talukdar | Anadolu | Getty Images The Indian government's tax revenues have taken a "huge hit" after New Delhi slashed central excise duties on fuel for domestic consumption, Petroleum and Natural Gas Minister Hardeep Singh Puri said Friday.The Indian government late Thursday cut central excise duties on petrol and diesel for domestic consumption by 10 rupees ($0.11) per liter each, to keep pump prices from rising as the Iran war disrupts global energy supplies.International crude prices have "gone through the roof" in the last month, from roughly $70 a barrel to around $122, Puri said in a post on X.The government has decided to bear the cost of rising energy prices and keep retail fuel prices from rising, he said, adding that these tax cuts will reduce the losses faced by oil companies, which stand at around 24 rupees per liter for petrol and 30 rupees per liter of diesel.According to a government notice, the excise duty for petrol will be reduced to 3 rupees per liter, down from 13 rupees, while diesel will be zero rupees per liter, down from 10 rupees.As a further safeguard, the government raised duties on diesel exports to 21.5 rupees per liter and on aviation turbine fuel to 29.5 rupees per liter. Finance Minister Nirmala Sitharaman said it was done to "ensure adequate availability of these products for domestic consumption.""This will provide protection to consumers from rise in prices," Sitharaman said in a post on X on Friday. watch nowVIDEO4:5004:50India's farms, domestic demand & growth: Risk analyst on Iran war contagionInside India Oil is a sticky topic As the world's third‑largest oil importer and second‑largest liquefied petroleum gas consumer, India is grappling with rising energy costs and panic‑buying amid tightening supplies due to the closure of the Strait of Hormuz. "The longer the energy supply disruptions persist with oil prices remaining above $100/barrel, the higher the structural risks to the economy, particularly if domestic policy responses are not managed carefully," said Luchnikava-Schorsch, head of Asia-Pacific Economics, S&P Global Market Intelligence, told CNBC.If the Indian government raises retail prices of oil and gas, it could lift inflation and temper growth. However, absorbing the higher costs would widen the fiscal deficit.The impact of the Middle East conflict is already visible in key macroeconomic indicators.HSBC's flash Purchasing Managers' Index, released Tuesday, showed that India's private‑sector activity in March slowed to its lowest level since October 2022 due to softer domestic demand. div {box-sizing: border-box;} .noselect { -webkit-touch-callout: none; /* iOS Safari */ -webkit-user-select: none; /* Safari */ -khtml-user-select: none; /* Konqueror HTML */ -moz-user-select: none; /* Old versions of Firefox */ -ms-user-select: none; /* Internet Explorer/Edge */ user-select: none; /* Non-prefixed version, currently supported by Chrome, Edge, Opera, and Firefox */ } #tcc-wrapper {width: 100%; max-width: 620px; min-width: 300px; cursor: pointer; display: block;} .tcc-widget-content { font-family: Proxima Nova,Helvetica,Arial,sans-serif; font-size: 16px; line-height: 24px; font-weight: 400; color: #000; padding: 16px 0 16px 0; width: 100%; height: auto; border-top: 1px solid #cccccc; border-bottom: 1px solid #cccccc; } .tcc-logo-col { float: left; margin-right: 20px; } .tcc-text-col { } .tcc-text a { color: #0053CF !important; text-decoration: none; font-weight: 600; } Get a weekly roundup of news from India in your inbox every Thursday. Subscribe now Companies surveyed cited the Middle East conflict, unstable market conditions, and intensifying inflationary pressures as factors weighing on growth. Cost inflation is now near a four‑year high.If oil settles at $85-$95 a barrel after the war, that could lead to incremental outflows of $40 billion to $50 billion — more than 1% of India's GDP — according to Renaissance Investment Managers CEO and Chief Investment Officer Pankaj Murarka, speaking to CNBC's "Inside India" on Friday.This could trim India's economic growth to 6.5% from from 7.2%, he said. Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.

India has reinstated windfall taxes on diesel and aviation turbine fuel exports, with levies of Rs 21.5 and Rs 29.5 per litre respectively. This policy reversal follows the earlier abolition of such taxes in 2024, as global oil markets remain volatile due to geopolitical tensions. View More

India has reintroduced windfall taxes on fuel exports, setting a levy of Rs 21.5 per litre on diesel and Rs 29.5 per litre on aviation turbine fuel (ATF), according to a government order issued on Thursday. The move marks a reversal of the government’s earlier decision to scrap such taxes, as authorities seek to recalibrate revenue from the energy sector amid heightened volatility in global oil markets. The latest notification specifies that the windfall tax will apply to the export of diesel and ATF, key refined products that account for a significant share of India’s outbound petroleum shipments. Also read: India slashes special additional excise duty on petrol, diesel by Rs 10 per litre India had abolished the windfall tax regime in 2024, removing levies on crude oil production as well as exports of petrol, diesel and aviation turbine fuel. The reimposition indicates a renewed policy shift as global crude prices remain sensitive to geopolitical tensions, particularly in the Middle East. Live Events The development comes alongside a broader set of changes to the country’s fuel taxation framework, including revisions to excise duties on petrol and diesel notified separately. Fuel duty cuts, domestic pricing context The reimposition comes alongside a broader reset in India’s fuel taxation framework. The government has cut the special additional excise duty on petrol to Rs 3 per litre and reduced it to nil on diesel, replacing the earlier levy structure with immediate effect. Previously, the duty stood at Rs 13 per litre on petrol and Rs 10 per litre on diesel, implying a reduction of Rs 10 per litre in both cases, based on earlier government notifications. The revised structure lowers the tax burden on petrol and eliminates it entirely on diesel, while excluding fuel meant for export. The intervention follows recent price hikes by private retailer Nayara Energy, which raised petrol prices by Rs 5 per litre and diesel by Rs 3 per litre, highlighting cost pressures in the sector. Petroleum Minister Hardeep Singh Puri said the government had taken a hit on tax revenues to cushion losses of oil companies amid elevated global prices. Also read: India mandates export tax on refineries selling petrol and diesel overseas Global oil volatility drives policy shifts The policy changes come against the backdrop of heightened global oil market volatility triggered by the ongoing West Asia conflict. Crude prices surged to nearly $119 per barrel after US and Israeli strikes on Iran before easing to around $100 levels. Oil prices remained volatile through the week, with Brent crude slipping to about $107 per barrel and US West Texas Intermediate to around $93.6 after US President Donald Trump signalled a temporary pause in strikes on Iran’s energy infrastructure. Despite the recent pullback, supply concerns persist due to disruptions in the Strait of Hormuz, a key transit route for global energy trade. Analysts warn that crude prices could remain elevated in the $85–$110 per barrel range in the near term, with potential spikes to $150 if disruptions continue. .Pbanner{display:flex;justify-content:space-between;align-items:center;background-color:#ec1c40;margin-top:20px;padding:5px 10px;border-radius:4px;color:#fff;line-height:10px;} .Pbannertext{display:flex;align-items:center;font-size:16px;font-weight:600;font-family:'Montserrat';} .Pbannertext img{height:20px;margin:0 6px} .Pbannerbutton a{display:flex;align-items:center;background-color:#fff;color:#ec1c40;text-decoration:none;font-weight:600;padding:4px 8px;border-radius:6px;font-size:15px;font-family:'Montserrat';} .Pbannerbutton img{height:20px;margin-right:6px} .Pbannerbutton a:hover{background-color:#f7f7f7} Add as a Reliable and Trusted News Source Add Now! (You can now subscribe to our Economic Times WhatsApp channel) (You can now subscribe to our Economic Times WhatsApp channel)

India has significantly reduced excise duties on petrol and diesel, cutting the special additional excise duty on petrol to Rs 3 per litre and eliminating it entirely on diesel. These changes, effective immediately, aim to ease the tax burden on consumers amidst volatile global crude oil prices and supply chain disruptions. View More

India has reduced the special additional excise duty on petrol to Rs 3 per litre and cut it to nil on diesel, according to a government order dated Thursday, which replaces the earlier levy structure with immediate effect, even as global fuel prices remain volatile due to disruptions triggered by the Iran conflict. Based on the latest revision, the duty on petrol has been reduced to Rs 3 per litre from earlier higher levels, while diesel has seen a complete removal of the levy. Previously, the duty stood at Rs 13 per litre on petrol and Rs 10 per litre on diesel, implying a reduction of Rs 10 per litre each, according to prior government notifications. The cuts are effective immediately, according to the Ministry of Finance's notification. Also read: India reimposes windfall tax on diesel, ATF exports; sets rates at Rs 21.5/litre and Rs 29.5/litre The notification amends the existing excise framework to substitute the duty rates, effectively lowering the tax burden on petrol and eliminating it on diesel, while clarifying that the revised rates will not apply to fuel meant for export. Strait of Hormuz's closure triggers supply chain disruption “Government has taken a huge hit on it taxation revenues to ensure very high losses of oil companies (approximately 24 Rs/litre for petrol and 30 Rs/litre for diesel) at this time of sky high international prices are reduced,” Petroleum and Natural Gas Minister Hardeep Puri wrote on X. Live Events CBIC Chairman Vivek Chaturvedi said that the total revenue foregone on petrol and diesel duty slash is Rs 7,000 cr in a fortnight. The duty cuts come as India faces pressure from surging global crude prices and supply disruptions. The U.S.-Israeli war with Iran has led to a near-closure of the Strait of Hormuz, a key conduit for global oil flows, affecting shipping and gas supplies, Reuters reported. India, the world’s third-largest oil importer, meets over 90% of its crude requirements through imports, making it particularly vulnerable to such disruptions. Further, the government has also revised the duty structure on aviation turbine fuel (ATF) through a series of separate notifications. While one notification imposes a special additional excise duty of ₹50 per litre, others provide exemptions or adjusted rates under different provisions. ANI reported that the government has also exempted ATF from certain components of the levy, providing relief to the aviation sector. Also read: India mandates export tax on refineries selling petrol and diesel overseas The changes form part of a broader set of amendments to the central excise regime notified on March 26, 2026, and follow the previous revision carried out in April 2025, when the Centre had raised duties on petrol and diesel by Rs 2 per litre. The move comes amid heightened volatility in domestic fuel pricing, with global crude markets roiled by the war in West Asia and its impact on supply chains. Retail fuel prices in India have remained largely unchanged despite a sharp rise in international oil prices, putting pressure on oil marketing companies. The government intervention also comes a day after India’s largest private fuel retailer Nayara Energy raised petrol prices by ₹5 per litre and diesel by Rs 3 per litre. The increase highlights diverging pricing strategies in the domestic market as input costs rise. International crude oil prices have surged sharply since late February following US and Israeli strikes on Iran, climbing close to $119 per barrel at peak levels before easing to around $100 per barrel. If crude prices rise further, fuel retailers could incur significant losses on petrol and diesel sales. Nayara Energy, majority-owned by Russia’s Rosneft, operates over 7,000 fuel stations across India. Dealers expressed concern over the price hike, warning of potential demand impact and signalling possible protests. Some dealers also indicated that fuel supplies had been curtailed in recent days. Also read: Oil slips marginally, holds above $100 as Donald Trump pauses Iran energy strikes for 10 days. What lies ahead? Global oil volatility persists Oil prices eased in early Friday trade after a volatile week, as US President Donald Trump signalled progress in talks with Iran and announced a temporary pause on strikes targeting energy infrastructure. Brent crude fell to around $107 per barrel, while US West Texas Intermediate dropped to about $93.6, trimming gains from the previous session when prices had surged sharply on escalation fears. Despite recent spikes, both benchmarks of the Indian equity markets--the Sensex and Nifty--are heading for weekly declines amid hopes of a diplomatic breakthrough. However, the conflict has significantly disrupted flows through the Strait of Hormuz, intensifying supply concerns. Analysts warn that even if tensions ease, crude prices are likely to remain elevated, with forecasts suggesting a range of $85–$110 per barrel in the near term, and potential spikes toward $150 if disruptions persist. .Pbanner{display:flex;justify-content:space-between;align-items:center;background-color:#ec1c40;margin-top:20px;padding:5px 10px;border-radius:4px;color:#fff;line-height:10px;} .Pbannertext{display:flex;align-items:center;font-size:16px;font-weight:600;font-family:'Montserrat';} .Pbannertext img{height:20px;margin:0 6px} .Pbannerbutton a{display:flex;align-items:center;background-color:#fff;color:#ec1c40;text-decoration:none;font-weight:600;padding:4px 8px;border-radius:6px;font-size:15px;font-family:'Montserrat';} .Pbannerbutton img{height:20px;margin-right:6px} .Pbannerbutton a:hover{background-color:#f7f7f7} Add as a Reliable and Trusted News Source Add Now! 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Amid slowing global sales and store closures in China, Ikea has high hopes for India. View More

In this articleXAU=MANAPPURAM-INMUTHOOTFIN-INUSBFollow your favorite stocksCREATE FREE ACCOUNT .ido-promo__content { box-sizing: border-box; width: 100%; background-color: #f0f0f0; padding: 2px 20px 2px 20px; font-family: Lyon, Helvetica, Arial, sans-serif; font-size: 18px; line-height: 1.66; } This report is from this week's "Inside India" newsletter, which brings you timely, insightful news and market commentary on the emerging powerhouse — Subscribe today Hello, this is Priyanka Salve, writing to you from Singapore. Welcome to the latest edition of Inside India — your one-stop destination for stories and developments from the world's fastest growing large economy. This week, I dive into the world's largest furniture retailer, Ikea, and its big plans in India even as it contends with sluggish sales in key markets as well as store closures in China.Enjoy!Any thoughts on today's newsletter? Share them with the team. The big story Ikea, the world's largest furniture retailer, has seen a slowdown in sales globally. And while it has closed several large stores in China, the Swedish company is doubling down on neighboring India. Patrik Antoni, CEO of Ikea India, has been appearing in playful Instagram reels teasing store launches in India — "a priority market" for the company. Currently, there are six Ikea stores in India, and the company is aiming for around 30 within five years, which will be a mix of large and small stores and pick-up points for online deliveries. Ikea views India not only as a potential major retail market but also as a possible export hub, supported by the India‑EU free trade agreement that was finalized on Jan. 26. Further, 30% of the company's India sales currently come from locally sourced raw materials, a figure it aims to lift to 50% by 2030, according to Antoni. This growing local sourcing ecosystem, strengthened by rising domestic demand and export‑friendly policies, positions India as an increasingly strategic base for Ikea. "India is a long-term market for us, and we are building with the next 100 years in mind," Antoni told CNBC in an email interview. He added that the India-EU trade pact signals "a strong economic alignment between two important markets," and this could boost India's role "as a production and export base within our global network."India's furniture and home décor market, valued at over $25 billion in 2024, is projected to reach $40.8 billion by 2033, as per the Indian commerce ministry-backed organization IBEF. But Ikea forecasts even faster expansion, expecting the market to hit $48 billion by 2030 — momentum the company is keen to capture.Globally, Ikea's retail sales have declined over the past two years, falling to 44.6 billion euros ($51.7 billion) in the financial year ended Aug. 31 2025 from 45.1 billion euros in the prior year. Europe accounts for more than 70% of its sales, followed by North America (17%) and Asia (around 9%). Meanwhile, in China — another major market for the company— growth has slowed sharply. Ikea is closing seven large-format stores in the country to focus on smaller outlets as a weak housing market and intensifying competition from online retailers takes a toll. "We will shift from scale-based expansion to precision-driven penetration," the Swedish retailer said. Girls take selfie picture in front of IKEA store in Bangalore, India, 17 September, 2022. IKEA is the world's leading Swedish home furnishing retailer which expands across multiple cities in India. (Photo by Indranil Aditya/NurPhoto via Getty Images)Nurphoto | Nurphoto | Getty Images Banking on India's growth India is dominated by smaller furniture and interiors players, with no domestic brand operating at Ikea's scale, as per the IBEF. Also, housing sales since the pandemic have seen strong growth, with a marginal slowdown in 2025, according to data from real estate consultancy Knight Frank."We are truly inspired by this potential," Antoni said, noting that evolving lifestyles and expanding real estate categories are creating fresh opportunities.Ikea's India sales rose by around 6% in the financial year ended August 2025, with furniture being the leading category, the company said. The company's EBITDA, excluding fixed costs, also improved by over 10%, it said. Although India's current contribution — 18.5 billion rupees ($196.7 million) — to Ikea's global revenue remains modest, the company expects retail operations in the country to turn profitable by its financial year ending Aug. 2028 and is doubling down on its expansion plan.Ikea currently operates three large-format stores in Hyderabad, Navi Mumbai and Bengaluru, as well as city stores in Mumbai and West Delhi. Pune, its newest store, opened earlier this month. A new store format, known as "Lykli," was due to open in the northern city of Gurugram in "late 2025," described by the company as "a key destination for entertainment, social connections and retail therapy," complete with office facilities and community spaces.When asked about the timeline for that store, the company did not disclose details but said that Gurugram will be the first large-format store in North India and will be followed by another Lykli store in Noida in the state of Uttar Pradesh.The in‑store "touch and feel" experience is vital for IKEA in India, where offline outlets generate 70% of sales compared with 30% from e‑commerce, Antoni said.Ikea's expansion strategy will prioritize six key markets: Mumbai, Delhi National Capital Region, Bengaluru, Hyderabad, Pune and Chennai. Last year, Ikea India recorded nearly 110 million "customer interactions," and the Swedish firm now hopes to get a bigger share of their wallets.— CNBC's Anniek Bao contributed to this story.Need to knowUnited Spirits sells its Indian Premier League franchise, RCB. A consortium comprising Blackstone and serial American sports investor David Blitzer among others, has acquired the Indian Premier League's Royal Challengers Bengaluru franchise in a 166 billion rupees ($1.78 billion) deal. India's private sector activity in March slowed to its lowest level since October 2022. HSBC's flash India Composite PMI, which measures the monthly change in the combined manufacturing and services output, slowed to 56.5 in March from 58.9 in February.Novo Nordisk faces competition from Indian generic drugmakers: The first wave of generic versions of Novo Nordisk's GLP-1 weight-loss drugs launched in India over the weekend, with at least five domestic drugmakers undercutting the original price by up to 80%. Coming upMarch 30: External debt data for January to March.March 30: Industrial output data for February.March 31: RBI releases Balance of Payment data for January to March. Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.