After the likes of Ikea, Budget fashion chain Hennes & Mauritz is likely to enter Indian market.

With the Indian government recently relaxing the rules of ownership for a foreign company in the country, many multinationals have shown eagerness to tap into domestic demand.

H&M hopes to cater to a growing urban middle-class with a strong demand for western-lifestyle products. H&M Chief Executive Karl-Johan Persson said after a meeting with Commerce Minister Anand Sharma that the Indian market had huge potential. “We will start with a few stores … and we will see if everything (goes) as we hope, then we will expand heavily from there,” he said in a statement.

H&M, the world’s second-largest apparel retailer after Zara-owner Inditex, is looking at developing and stronger markets like India after sales in its traditional bastion of Europe was affected by the region’s debt crisis.

India last year opened up to full foreign ownership of single-brand retail firms. Persson said H&M would increase its sourcing in the country.