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, 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.
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:
a). Formulation of a comprehensive 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% to 60% in February 2020, and subsequently to 70% in March 2023.
c). Directorate General of Foreign Trade (DGFT) has mandated sample testing of each import consignment to curb the import of sub-standards toys
d). A Quality Control Order (QCO) for Toys was issued in 2020, with effect from 01.01.2021.
e). Special provisions were notified by BIS on 17.12.2020 to grant licences 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.
f). BIS has granted more than 1200 licences to domestic manufacturers and more than 30 licences to foreign manufacturers for manufacture of toys with BIS standard Marks
g).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.
h).Several promotional initiatives have also been undertaken to promote indigenous toys and encourage innovation, including The Indian Toy Fair 2021, Toycathon, etc.
