US retail giant Walmart will be procuring toys, shoes and bicycles from suppliers in India as it seeks to boost exports from the subcontinent to $10 billion annually by 2027.
A spokesperson from the firm told PTI news agency that it is looking to establish new supplier partnerships in various industries, such as food, pharmaceuticals, consumables, health and wellness, as well as apparel and home textiles.
“Walmart’s efforts to expand sourcing from India involve strengthening collaborations with existing suppliers and facilitating the development of new suppliers in categories such as food, pharmaceuticals, consumables, health and wellness, as well as apparel and home textiles. We are also exploring opportunities in the areas of toys, shoes, and bicycles,” the spokesperson was quoted as saying.
The move comes after representatives from Walmart held a virtual meeting with many Indian toy manufacturers to communicate their specific requirements and expected quality standards.
India was once net importer of toys
Once a net importer of toys, India has made great efforts to boost its local manufacturing capacity in order to meet external demands. Prime Minister Narendra Modi’s ‘Make in India’ initiative played a significant role in this turnaround as it generated $326.63 million in export revenue in the financial year 2021-22, up from $96.17 million in 2014-15.
Walmart joins other global retailers like IKEA who are already sourcing toys from India for their international operations, underscoring the country’s growing clout in the toy industry.
In December 2020, Walmart had committed to triple its exports from India to $10 billion annually by 2027, which it said, would greatly benefit micro, small, and medium-sized enterprises (MSMEs) in India.
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“The expansion in sourcing will include helping develop hundreds of new suppliers in categories such as food, pharmaceuticals, consumables, health & wellness and general merchandise, along with apparel, homeware and other key Indian export categories,” it had said.
On May 15, Walmart CEO Doug McMillon met Prime Minister Narendra Modi in the national capital New Delhi where he reiterated that the company planned exports from India worth $10 billion a year by 2027.
Commenting on the interaction, Walmart said, “We have a long history in India and we’re continuing to grow an ecosystem that creates opportunity.”
“We look forward to continuing to work together with our partners to make quality, affordable, sustainable products for our customers and members, help businesses grow, create jobs, strengthen resilient communities, and accelerate India’s progress as a manufacturing destination. This ties into our goal to expand our exports of ‘Made in India’ products from India to $10 billion each year by 2027,” McMillon stated during his visit to India.
(With inputs from agencies)
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