Indian Economy News

Walmart plans to export toys, shoes, and bicycles worth US$ 10 billion from India

Walmart wants to attain toys, shoes, and bicycles from Indian vendors as part of its aim to grow exports to that country to US$ 10 billion by 2027. According to a Press Trust Report (PTI) report, the corporation is also thinking about finding new suppliers in industries like food, pharmaceuticals, consumables, health & wellness, fashion, and home textiles.

Walmart stated in 2020 that by 2027, it will increase the amount of items it exports from India, reaching US$ 10 billion annually. Walmart exported US$ 3 billion worth of goods from India that year.

President and Chief Executive Officer of Walmart Inc. Mr. Doug McMillon stated that by accelerating the annual India exports in the coming years, the company is supporting the ‘Make in India’ initiative and helping more local businesses reach international customers while creating jobs and prosperity at home in India. Additionally, it allows Walmart to provide millions of customers throughout the world with more high-quality products created in India.

Walmart is committed to doing business in India and committed to improving the lives of customers, suppliers, and sellers. The Flipkart Group, which has over 350 million customers and provides upwards of 150 million products across more than 80 categories, Flipkart Wholesale, which focuses on enabling growth and prosperity for kiranas and MSMEs throughout India's retail ecosystem, Myntra, which provides consumers with fashion and lifestyle products, and Phonepe, a payments platform with over 300 million registered users, are all part of Walmart's operations in India.

In contrast, Walmart's global sourcing allows Indian manufacturers a method to sell their goods in foreign markets like the US, Canada, Mexico, Central America, and the United Kingdom, as well as clothing, home goods, jewellery, and other products. Additionally, Walmart Global Tech India is where the business is developing technical and product development solutions to suit Walmart's business objective of providing customers with a convenient, anytime shopping experience.

Not just Walmart, but other major multinational retailers like IKEA already source toys from India for their operations abroad. India used to be a net importer of toys, but recent actions show that the country is becoming more competitive in the toy market. Toy import duties were hiked from 20-60% in February 2020, and this year they have been raised to 70%. The administration is also thinking of establishing a Production Linked Incentive (PLI) style fiscal incentive programme for toys. The government published a Toys (Quality Control) Order earlier in 2020. Toys must follow the applicable Indian standard’s requirements and be licenced to use the standard mark, according to the directive.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.