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Its a definite sign of worsening times, but a measure that his highly advised against, especially during global economic downturns. India on Friday banned Chinese made toys for six months in order to protect the domestic industry which was being hurt with a flood of cheap Chinese toys that couldn’t make it to western shores.
While Indian importers will be hit, traders are more worried about China’s retaliation. China is India’s largest trading partner and a move to block trade between the nations could turn relations frosty again.
Indian markets saw a flood of Chinese made toys in the second half of 2008 after many western countries decided not to import toys manufactured in China anymore. Besides a lack of capital western importers decided to “buy American” also due to recent quality problems. Toy retailers were worried about the paint and materials being used to manufacture the toys and had recalled several batches in 2008. Indian officials were worried that a majority of these toys landed up on Indian shores at very low prices.
“You see Chinese toys everywhere. The good, upper-end toys are made in India, but the cheap toys in the street and small shops were being dominated by them. They are bringing in toys without safety norms,” Toy Association of India’s president, Raj Kumar told Reuters.
