Walmart Aims to Boost Indian Exports with $10 Billion Worth of Toys, Shoes, and Bicycles

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Walmart Aims to Boost Indian Exports with $10 Billion Worth of Toys, Shoes, and Bicycles
23 May 2023
4 min read

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News Synopsis

Walmart's Ambitious Goal to Boost Indian Exports

Retail giant Walmart has unveiled its ambitious plan to enhance its export capabilities in India by sourcing toys, shoes, and bicycles worth a staggering $10 billion. The move comes as part of Walmart's commitment to supporting the 'Make in India' initiative, while also stimulating job creation and prosperity within the country.

In its quest to achieve this significant milestone by 2027, Walmart is actively exploring new suppliers across various industries. Apart from toys, shoes, and bicycles, the company is considering expanding its product offerings to include food, pharmaceuticals, consumables, health & wellness products, fashion, and home textiles, according to a report by a news agency.

Walmart's CEO Emphasizes Local Business Growth

Walmart's President and Chief Executive Officer, Mr. Doug McMillon, expressed his enthusiasm for accelerating India's annual exports in the coming years. He highlighted the significance of this endeavor in promoting the 'Make in India' initiative and providing local businesses with access to international customers. Moreover, Walmart's increased sourcing from India enables the company to offer millions of customers worldwide a broader range of high-quality products manufactured in India.

Walmart's Operations in India

Walmart's presence in India extends beyond its core retail operations. The company owns and operates several subsidiaries, including the renowned Flipkart Group. Flipkart serves over 350 million customers, offering an extensive selection of more than 150 million products across 80 categories. Walmart also encompasses Flipkart Wholesale, which focuses on empowering kiranas (small independent stores) and MSMEs (Micro, Small, and Medium Enterprises) within India's retail ecosystem. Additionally, Myntra, a fashion and lifestyle product provider, and Phonepe, a popular payments platform with over 300 million registered users, are part of Walmart's operations in India.

Walmart's Global Sourcing and Market Expansion

Walmart's global sourcing initiatives present an opportunity for Indian manufacturers to access foreign markets such as the US, Canada, Mexico, Central America, and the United Kingdom. Indian suppliers can leverage Walmart's extensive network to export various products, including clothing, home goods, jewelry, and more. To enhance customer experience and convenience, Walmart Global Tech India is dedicated to developing technical and product solutions aligned with Walmart's overarching objective.

India's Rising Competitiveness in the Toy Market

Walmart's focus on sourcing toys from India aligns with a growing trend among major multinational retailers like IKEA. India, once a net importer of toys, has witnessed a shift towards increased competitiveness in the toy market. The Indian government implemented tariff hikes on toy imports in recent years, with import duties reaching 70% in 2023, up from 20-60% in 2020. Additionally, the government is considering the establishment of a fiscal incentive program akin to the Production Linked Incentive (PLI) scheme for the toy industry. Furthermore, the Toys (Quality Control) Order, issued earlier in 2020, mandates adherence to applicable Indian standards and the use of the standard mark for licensed toys.

By leveraging its global reach and expertise, Walmart aims to facilitate the growth of Indian exports while strengthening the country's position in the international market. The company's commitment to doing business in India extends beyond mere transactions, as it actively seeks to improve the lives of customers, suppliers, and sellers.

With Walmart's extensive distribution network and strong relationships with suppliers, Indian manufacturers have the opportunity to expand their presence on a global scale. By tapping into Walmart's vast customer base and diverse product categories, local businesses can showcase their offerings to a broader audience and capitalize on the demand for high-quality goods.

Moreover, Walmart's emphasis on the 'Make in India' initiative aligns with the government's vision of transforming India into a manufacturing hub and promoting self-reliance. By sourcing a wide range of products from Indian vendors, Walmart actively contributes to job creation and economic growth within the country. This collaboration between Walmart and local businesses not only benefits the domestic economy but also fosters a mutually beneficial partnership that drives innovation and competitiveness.

As Walmart continues to expand its operations in India, it remains committed to providing customers with convenient, anytime shopping experiences. Through its subsidiaries such as Flipkart, Flipkart Wholesale, Myntra, and Phonepe, Walmart caters to the diverse needs of Indian consumers, offering a comprehensive range of products and services across various sectors.

Conclusion

Walmart's plans to export toys, shoes, and bicycles worth $10 billion from India signify the company's dedication to supporting India's manufacturing sector and promoting global trade. With its vast resources, strategic partnerships, and commitment to local businesses, Walmart is poised to play a crucial role in India's journey towards becoming a key player in the global market.

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