NEW DELHI--India on Thursday approved Swedish furniture retailer IKEA's proposal to invest 105 billion rupees ($1.95 billion) in the country to open 25 stores, Information and Broadcasting Minister Manish Tewari said.

The company's planned investment is the largest by a foreign retailer in India since the country amended its laws in late 2011 to allow 100% foreign ownership in single-brand retail ventures. Before that, foreign companies were allowed to own only up to a 51% stake in such retail operations.

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