FDI benefits even those Indians who already have a job

IKEA has found its entry into the Indian retail market challenging but it has also brought many benefits to its Indian workers.

IKEA needs to source 30% of its inventory in India, a condition imposed by the Indian government on single-brand retail firms that operate in India without local ownership. Working conditions at IKEA’s factory in Bhadohi, a major center for carpet weaving in India, comply with its global standards.

Child labour is banned. Women are encouraged to work while their children are looked after at a nursery on the factory premises. Every worker was compelled to open a bank account in order to receive a salary. Working hours don’t stretch beyond eight hours a day. Workers get subsidized housing on top of their wages. An emphasis on workplace safety means that workers are not carelessly exposed to hazardous chemicals. Classes are held on firefighting, first aid and matters of personal hygiene.

IKEA’s foreign direct investment (FDI) has created about 2,000 jobs in India.

By working with its local suppliers to upgrade the quality of their products and improving the working conditions of its labour, IKEA has proved that FDI can help even those Indian workers who already have a job.


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