Walmart, the prominent US retail giant, aims to boost its annual exports from India to $10 billion, with a notable share attributed to domestic toys, according to a senior government official on Thursday.
Sanjiv, the Joint Secretary at the Department for Promotion of Industry and Internal Trade (DPIIT), mentioned that the American company recently conducted a workshop involving 100 Indian toy manufacturers. The objective is to establish a supply chain for exporting toys from India.
“Walmart has given a target of $10 billion exports from India and in that they are going to have toy exports as a significant portion,” he said.
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The company had earlier informed toy makers about their requirements and expected quality standards.
Walmart’s Commitment: Tripling Exports by 2027
In December 2020, Walmart pledged to triple its annual exports of goods from India to $10 billion by 2027, offering a substantial uplift to micro, small, and medium-sized enterprises (MSMEs) in the region.
International retail giants like IKEA are currently procuring toys from India to support their global operations.
This development is noteworthy and underscores India’s increasing prowess in the toy industry, particularly considering that the country used to be a net importer of toys just a few years ago.
Sanjiv said that at present India is exporting toys to all countries, including the EU, and the US.
He added that inter-ministerial consultation and participation have helped in making toys, a successful story in India.
He informed that 14 departments, including education, tourism, and information technology, have been assigned 21 tasks to promote the growth of the sector.
“Each one of them has been assigned a work in respect of their ministry,” he said.
There are four themes of the National Action Plan for Toys (NAPT), including promoting trade and investments; design and quality; and promoting indigenous toys.
As many as 32 toy clusters have also been identified where artisans have been provided government support.
Compared to 2014-15, toy imports have dipped by 52% and exports rose by 239% in 2022-23.
A study was also conducted by the Indian Institute of Management (IIM) Lucknow on the ‘Success Story of Made in India Toys’ at the behest of the DPIIT.
According to the report, the efforts of the government have enabled in creation of a more conducive manufacturing ecosystem for the industry.
It highlighted that from 2014 to 2020, these efforts have led to the doubling of the number of manufacturing units and a reduction in dependence on imported inputs from 33% to 12%.
India is also emerging as a top exporting nation due to the country’s integration into the global toy value chain, along with zero-duty market access for domestically manufactured toys in countries, including UAE and Australia.
To position India as a viable alternative to current toy hubs of the world (China and Vietnam), consistent collaborative efforts of the toy industry and the government are essential for advancements in technology, embracing e-commerce, encouraging partnerships and exports, and investing in brand-building, the report stated.
The government has formulated a comprehensive NAPT having 21 specific action points, and implemented by 14 central ministries/departments, with DPIIT as the coordinating body.
Basic Customs Duty (BCD) on toys was increased from 20% to 60% in February 2020, and subsequently to 70% in March 2023. The Directorate General of Foreign Trade (DGFT) has mandated sample testing of each import consignment to curb the import of sub-standard toys.
A Quality Control Order (QCO) for toys was issued in 2020, with effect from January 2021.