India no longer dependent on Chinese toys

The Indian Toy industry witnessed remarkable growth with the decline in imports by 52 per cent, rise in exports by 239 per cent and development of overall quality of the Toys available in the domestic market during the last nine years.

These observations have been noted in a Case Study on “Success Story of Made in India Toys” has been conducted by the Indian Institute of Management (IIM) Lucknow at the behest of Department for Promotion of Industry and Internal Trade (DPIIT).

The report states that the efforts of the Government have enabled in creation of a more conducive manufacturing ecosystem for the Indian Toy industry. In a span of 6 years, from 2014 to 2020,  dedicated efforts have led to the doubling of the number of manufacturing units, reduction in dependence on imported inputs from 33to 12 per cent and overall rise in labor productivity.

The report analyzed 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 stated that in order to position India as a viable alternative to current toy hubs of the world, 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.

The report emphasized 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 formulation of a comprehensive NAPT having 21 specific action points, and implemented by 14 Central Ministries/Departments, with DPIIT as the coordinating body.

Basic Customs Duty on imported toys was increased from 20 to 60 per cent in February 2020, and subsequently to 70 per cent in March 2023, with a view reduce dependence on imports from China. Directorate General of Foreign Trade (DGFT) has mandated sample testing of each import consignment to curb the import of sub-standards toys

A Quality Control Order (QCO) for Toys was issued in 2020, with effect from 1^st January.2021.

Special provisions were notified by BIS on 17.12.2020 to grant licenses to micro sale units manufacturing toys without testing facility for one year and without establishing in-house testing facility, which was further extended by three years.

The Bureau of Industrial Standards has granted more than 1200 licenses to domestic manufacturers and more than 30 licenses to foreign manufacturers for manufacture of toys with BIS standard Marks

Cluster-based approach adopted to support domestic Toy industry. The Ministry of 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. Several promotional initiatives have also been undertaken to promote indigenous toys and encourage innovation, including The Indian Toy Fair 2021, Toy cathon,