New Delhi [India], January 4 (ANI): The Indian Toy industry witnessed remarkable growth in FY 2022-23 in comparison to FY 2014-15, with a decline in imports by 52 percent, a rise in exports by 239 percent and development of overall quality of the toys available in the domestic market.
These observations have been noted in a case study on “Success Story of Made in India Toys” conducted by the Indian Institute of Management (IIM) Lucknow at the behest of the Department for Promotion of Industry and Internal Trade (DPIIT).
The report states that the efforts of the government have enabled the creation of a more conducive manufacturing ecosystem for the Indian Toy industry. It highlighted that in a span of 6 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 percent to 12 percent, an increase in gross sales value by a CAGR of 10 percent, and an overall rise in labour 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 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 the formulation of a comprehensive NAPT having 21 specific action points, implemented by 14 Central Ministries/Departments, with DPIIT as the coordinating body.
Other interventions and initiates include, Basic Customs Duty (BCD) on toys (HS code 9503) increased from 20 per cent to 60 per cent in February 2020, and subsequently to 70 per cent in March 2023, Directorate General of Foreign Trade (DGFT) mandated sample testing of each import consignment to curb the import of sub-standard toys, a Quality Control Order (QCO) for Toys was issued in 2020, with effect from January 1, 2021, and special provisions were notified by BIS on December 17, 2020, to grant licences to micro-scale units manufacturing toys without testing facility for one year and without establishing the in-house testing facility, which was further extended by three years.
Further interventions and initiatives include BIS granting more than 1200 licences to domestic manufacturers and more than 30 licences to foreign manufacturers for the manufacture of toys with BIS standard marks, a cluster-based approach adopted to support the 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, Toycathon, etc.
In line with the recommendations made in the report, the government has already initiated/ undertaken measures under the NAPT.
Prime Minister Narendra Modi during his “Mann ki Baat” address in August 2020, expressed his desire to establish India as a global toy manufacturing hub. To fulfil the vision, the government has undertaken a series of initiatives including the formulation of a comprehensive like the National Action Plan for Toys (NAPT) to promote the designing of toys, using toys as a learning resource, monitoring the quality of toys, promoting indigenous toy clusters, etc.
The policy initiatives of the government together with the endeavours of the domestic manufacturers have resulted in the remarkable growth of the Indian toy industry.
DPIIT Secretary said that the toy industry is around 300 USD globally where india holds around USD 1.5 Bn, but in the next five years, we expect the Indian toy industry will double.
Sanjiv Singh, Joint Secretary, DPIIT said that global giant Walmart is interested in importing toys from India and selling them globally. Walmart has a target of USD 10 bn dollar overall imports from India including Indian toys.
Sanjay Kumar Singh, Professor, IIM Lucknow said that earlier the import from China was 94 percent and now it is reduced to 62 percent.
Over 1,200 safety licenses have been issued by the BIS to domestic toy manufacturers between August 2020 and April 2023. Most of these licenses (75 percent) were granted to micro-enterprises, with the remaining licenses issued to small, medium, and large enterprises.
Additionally, licenses have been issued to manufacturers from foreign countries – Vietnam, Thailand, Malaysia, Indonesia, Hungary, the Czech Republic, and Sri Lanka. (ANI)
