The proposal has already been scrutinised by the Department of Industrial Policy and Promotion (DIPP) in the commerce and industry ministries.
After FIPB's nod, it will have to be cleared by the Cabinet Committee on Economic Affairs (CCEA) as the board can only clear investment applications worth up to Rs. 1,200 crore.
The FIPB in its last meeting had cleared three single brand FDI proposals: British footwear retailer Pavers England, American luxury clothing retailer Brooks Brothers, and Italian jewellery-maker Damiani.
IKEA's would be the largest investment in single-brand retailing since the government allowed foreign investment in this sector.