The trade minister announced the news on Tuesday, a day after China warned New Delhi to exercise restraint or face serious damage to relationships.
At the end of last month, India banned imports of several types of toys from China for six months in the public interest, without giving any further details.
Trade Minister Kamal Nath (pictured) told reporters this week: "We are open to any discussions on this matter and until the government of India is satisfied we will not be able to lift this ban."
"I welcome any discussions on this matter. Certainly we will satisfy them for the reasons for which we have taken this step."
China has revealed it is concerned about recent Indian trade probes. Its Commerce Ministry said on Monday that India had launched 17 probes of Chinese-made products since October.
The country is worried about protectionism rising as the impact of the global financial crisis spreads. It believes such moves may increase the temptation for governments to bring in measures to help firms in the short-term but worsen the overall economic situation.
Nath said the bans India had placed on Chinese toys were World Trade Organisation compliant and were a matter of public health and safety.