 "52% drop in toy imports in 8 years, 239% jump in exports: Commerce Ministry")
The Indian toy industry witnessed remarkable growth in FY2022-23 in comparison to FY2014-15, with a decline in imports by 52 per cent, and a rise in exports by 239 per cent, said the Ministry of Commerce and Industry on Thursday.
These observations were noted in a case study on "Success Story of Made in India Toys", which was conducted by the Indian Institute of Management (IIM) Lucknow at the behest of Department for Promotion of Industry and Internal Trade (DPIIT).
According to the report, the efforts of the government have enabled the creation of a more conducive manufacturing ecosystem for the Indian toy industry.
The report further highlighted that in a span of six years, from 2014 to 2020, these dedicated efforts have led to the doubling of the number of manufacturing units, a reduction in dependence on imported inputs from 33 per cent to 12 per cent, increase in gross sales value by a compound annual growth rate (CAGR) of 10 per cent, and overall rise in labour productivity.
India emerging as a top toy exporting nation
The report analysed that India is also emerging as a top exporting nation due to the country's integration into the global toy value chain, along with zero-duty market access for domestically manufactured toys in countries, including UAE and Australia.
The report further stated that in order to position India as a viable alternative to current toy hubs of the world, i.e., China and Vietnam, consistent, collaborative efforts of the toy industry and the government are essential for advancements in technology, embracing e-commerce, encouraging partnerships and exports, investing in brand-building, engaging with educators and parents to communicate with children, valuing cultural diversity and collaborating with regional artisans, etc.
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The report emphasised that to address these issues and foster growth in the Indian toy industry, a strategic plan of action was needed. The government has implemented several interventions and initiatives, including:
a) Formulation of a comprehensive National Action Plan for Toys (NAPT) having 21 specific action points, and implemented by 14 central ministries/departments, with DPIIT as the coordinating body.
b) Basic Customs Duty (BCD) on toys (HS code 9503) was increased from 20 per cent to 60 per cent in February 2020, and subsequently to 70 per cent in March 2023.
c) Directorate General of Foreign Trade (DGFT) has mandated sample testing of each import consignment to curb the import of sub-standard toys.
d) A Quality Control Order (QCO) for toys was issued in 2020, with effect from January 1, 2021.
e) Special provisions were notified by the Bureau of Indian Standards (BIS) on December 17, 2020, to grant licences to micro-sale units manufacturing toys without a testing facility for one year and without establishing an in-house testing facility, which was further extended by three years.
f) BIS has granted more than 1200 licences to domestic manufacturers and more than 30 licences to foreign manufacturers for the manufacture of toys with BIS standard Marks.
g) Cluster-based approach adopted to support the domestic toy industry. The Ministry of Micro, Small and Medium Enterprises (MSME) is supporting 19 toy clusters under the Scheme of Funds for the Regeneration of Traditional Industries (SFURTI), and the Ministry of Textiles is providing designing and tooling support to 13 toy clusters.
h) Several promotional initiatives have also been undertaken to promote indigenous toys and encourage innovation, including The Indian Toy Fair 2021, Toycathon, etc.