Walmart Is Considering Exporting Toys, Shoes, And Bicycles From India

(CTN News) – Walmart is trying to increase exports from India by sourcing toys, shoes, and bicycles from Indian suppliers as part of a bid to boost exports.

According to the senior company official, the US-based retail giant is looking to expand its supplies from India to include categories such as food, pharmaceuticals, consumables, health and wellness, apparel, home textiles, and home furnishings.

There is no doubt that the decision highlights the fact that India continues to grow in the toy industry, as the country was a net importer of toys up until a few years ago.

Walmart’s growth in sourcing from India includes expanding its working relationships with existing suppliers as well as developing new suppliers in a variety of categories, including food, pharmaceuticals, consumables, health and wellness, apparel and home textiles.

Walmart spokesperson stated that the company is also exploring opportunities related to toys, shoes, and bicycles.

An official from Walmart held a virtual meeting with several domestic toy manufacturers in India to inform them about the specific requirements and the quality standards that are expected of them.

It was announced in December 2020 that Walmart would increase its exports of goods from India by a total value of $10 billion a year by the year 2027 in order to meet the company’s goal.

A substantial boost is expected to be provided to micro-, small-, and medium-sized enterprises in India through this commitment, as it aims to greatly benefit them.

As part of the expansion of sourcing, the company will support the development of hundreds of new suppliers in categories such as food, pharmaceuticals, consumables, health & wellness, and general merchandise, as well as apparel, homeware, and other key export categories to India, it had stated.

Efforts made by the Walmart DPIIT to boost exports include:

The move demonstrates that the efforts made by the Department for Promotion of Industry and Internal Trade (DPIIT) is bearing fruit now and that exports of domestically manufactured toys are witnessing a significant increase as a result of the project.

As a result of the department’s assistance, these domestic manufacturers were also able to connect with global suppliers and meet the requirements of their compliance program.

As of recent years, Walmart has increased exports of toys from India compared to previous years. India exported toys worth 167 crores worth of toys during the period of April-December 2022, which is a significant jump from the same period of 2013 when India exported toys worth 167 crores worth of toys.

Additionally, it is important to note that the total value of toys exported in the fiscal year 2021-22 amounted to 2,601 crores.

There is a strong possibility that toy imports will decline by 70 percent over the next two years, reaching a total of 870 crores in the process.

Also, the government increased the import duty on imported toys from 20% to 70%, in an effort to discourage the importation of toys and to stimulate the manufacturing of toys in the country.

Currently, the government is also considering the possibility of introducing a PLI (production-linked incentive) program for the toy industry.

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