IKEA ups sourcing from India: What It Means for Small Buyers
s global supply chains recalibrate in the wake of the China+1 strategy, India is fast emerging as a reliable, future-ready sourcing destination. A clear sign? Global furniture giant IKEA is doubling down on India - not just as a retail destination, but as a key sourcing hub. With a legacy spanning over 30 years in the country, IKEA now sources approximately €315 million worth of products annually from India and plans to double this figure in the coming years. This isn’t just a big-brand strategy - it’s a signal of India’s manufacturing strength and export-readiness across categories. It also presents a compelling opportunity not just for large manufacturers, but for small and mid-sized buyers looking to tap into a more dynamic and globally integrated supply chain.
While such moves reflect reflect large-scale industrial movements, they also open the door for smaller buyers and independent retailers to explore India with confidence. We, at Qalara, are at the forefront of making this shift accessible, access to 600+ producer partners across India—spanning sustainable, artisanal, design-forward, functional products in home, lifestyle, fashion, and more. Qalara enables businesses to benefit from India’s booming manufacturing and export potential without the need for massive volumes or capital.
Table of contents:
Why IKEA’s Sourcing Surge Matters
A Shift in Global Supply Chains
Opportunities for Small Buyers
Access to Upgraded Supplier Ecosystem
Broader Product Variety and Customization
Ethical and Sustainable Sourcing Credentials
Improved Logistics and Fulfillment
Why IKEA’s Sourcing Surge Matters
IKEA’s expansion in India is more than just a corporate growth move—it’s a strong vote of confidence in the depth, diversity, and maturity of India’s manufacturing ecosystem. With 48 local suppliers and nearly half a million workers across its supply chain, IKEA is doubling down on innovation, greenfield manufacturing, and sustainable practices to fully tap into India’s potential.
A key driver behind this continued investment is the company’s IWAY Standard—its global code of conduct for ethical sourcing. This includes a strict ban on child and forced labor, non-discrimination, fair wages, safe working conditions, and environmental responsibility. Through regular audits and a culture of continuous improvement, IKEA ensures that its suppliers align with its values of transparency and ethical production.
A Shift in Global Supply Chains
India’s rising profile in global sourcing isn’t just a win for big players like IKEA—it’s a sign of the times. With India now among IKEA’s top 10 sourcing countries and deeper investments underway across categories like textiles, metals, and even furniture, the message is clear: India is ready, reliable, and increasingly central to global supply chains.
This momentum is especially relevant in the post-China+1 world, where buyers of all sizes are rethinking sourcing strategies. India’s mix of skilled artisans, scale-ready infrastructure, and growing compliance culture makes it an ideal sourcing destination not just for multinationals, but also for small businesses and private labels. For those looking to diversify sourcing while aligning with ethical, design-forward, and sustainable values—India is now more accessible than ever.
Opportunities for Small Buyers
The global shift toward India as a sourcing destination unlocks a wealth of opportunities for small buyers, independent retailers, and growing D2C brands worldwide. Here’s how India’s expanding role in global supply chains is creating real value for smaller players:
1. Access to Upgraded Supplier Ecosystems
India’s supplier base has long demonstrated strong craftsmanship, manufacturing versatility, and the capacity to meet global standards. With increased sourcing activity and investment from global brands, the ecosystem continues to evolve—adopting better infrastructure, advanced technologies, and sustainability benchmarks. This progress makes it easier for small buyers to access reliable, high-quality manufacturing without large-scale investment or intermediaries.
2. Broader Product Variety and Customization
India’s manufacturing landscape is rich with diversity—from centuries-old artisanal skills to modern product innovation. The growing demand across categories like furniture, textiles, and homeware makes it easier for small buyers to access:
- Handcrafted home decor and storage furniture
- Natural fiber rugs, mats, and textiles
- Artisan-made ceramics, glassware, and kitchenware
- Organic bedding and sustainable cotton products
As sourcing from India scales up, customization options and product variety become even more accessible, allowing small businesses to build distinctive, value-led collections.
3. Ethical and Sustainable Sourcing Credentials
Consumers today want more than just good design—they want products with purpose. India’s supplier networks are increasingly aligning with global ethical standards, like IKEA’s IWAY, thanks to the rising demand for responsible sourcing. Small buyers can benefit from:
- Transparent sourcing and labor practices
- Verified supply chains with social and environmental compliance
- Stories and certifications that appeal to mindful shoppers
Sourcing from Indian suppliers aligned with these values helps small retailers differentiate themselves in saturated markets.
4. Improved Logistics and Fulfillment
As India strengthens its role in global trade, improvements in logistics and infrastructure are helping streamline fulfillment—especially in key sourcing hubs. This translates to:
- Faster turnaround times
- More reliable shipping networks
- Better consolidation and freight options
Platforms like Qalara make it easier for small buyers to leverage these improvements without needing in-country operations or logistics expertise.
5. Participation in Global Trade Trends
With shifting supply chain strategies and a growing focus on diversifying beyond China, India is naturally emerging as a strategic sourcing destination. Government initiatives, ongoing FTA discussions, and a resilient manufacturing base make it a future-ready partner. Early adopters among small buyers are better positioned to align with evolving trade policies and capitalize on the sourcing realignment already underway.
Conclusion
IKEA’s increased sourcing from India is more than a corporate milestone— it’s a clear indicator of India’s growing credibility as a global sourcing powerhouse. For small buyers, this shift means access to fast-evolving supplier ecosystem, where quality, reliability, and transparency are increasingly the norm. Whether you’re a boutique owner, e-commerce seller, or an aspiring brand founder, the moment to explore India as a sourcing destination has never been more promising.
Ready to source ethically made, design-led products from India?
Explore curated collections at Qalara.com and bring global quality to your store today.
~ Written by Kartik Singh Khati
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