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India bans Chinese toy imports

by Staff Writers
New Delhi (AFP) Jan 23, 2009
India banned imports of toys from China Friday in an apparent bid to shield domestic manufacturers from cheap imports.

"This restriction will remain in force for a period of six months," said an official from the Directorate General of Foreign Trade, which imposed the ban.

The government agency did not give a reason for the restriction but the Press Trust of India said the ban was to protect local manufacturers and out of concern over the safety standards of Chinese-made products.

According to the Mumbai-based All India Toy Manufacturers Association, Chinese products make up more than half the Indian retail toy market, which was estimated to be over 25 billion rupees (500 million dollars) in 2007.

China's toy industry has come under close scrutiny since millions of goods were recalled globally last year amid fears that they had been made with toxic lead paints or had dangerous design flaws.

China's toy exports have also taken a beating from the global financial crisis, with demand shrinking in the key US and European markets.

India has already banned imports of Chinese milk products following a milk scandal that led to the widespread poisoning of babies in China and dairy recalls around the world.

Despite a border dispute which took India and China to war in 1961, bilateral trade has grown to 15 billion dollars and is targeted to reach 20 billion dollars by 2010.

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