China will have to talk to India before going to WTO: Pillai

China will have to seek consultations with India on the issue of toy ban if it goes to the World Trade Organization (WTO).

“There is a procedure through which they have to come.... they have to seek consultations,” Commerce Secretary GK Pillai said here at a CII function. China may drag India to the WTO Dispute Settlement Body contesting six months ban on Chinese toys by India, Chinese official media had reported yesterday.

India had banned import of Chinese toys on January 23. While the Directorate General of Foreign Trade did not cite any reason for the ban, officials said the prohibition was necessary to protect kids from toxic hazards that may be associated with Chinese toys.

It was also perceived here that ban by New Delhi was aimed at providing protection to the domestic industry from the Chinese manufacturers, which claimed at least half of the Rs 2,500 crore Indian toys market.

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.

While talking about the stimulus packages, Pillai said that the positive impact of the packages in stimulating the economy will be seen from June.

“By June, we will have turned the corner and... Start to grow ...,” Commerce Secretary GK Pillai said here at a CII function. He said that while the pace of growth would not be the same as it was between 2004 and 2008, it will definitely improve. In the two packages, the government had slashed excise duty by four per cent across the board and announced Rs 20,000 crore additional non-plan expenditure.