Boost to Atmanirbhar Bharat for domestic toy manufacturing industry, toy imports down by 70% & exports rise by 61% in last 3 years

New Delhi: In a major boost to the Atmanirbhar Bharat mission in the domestic toy manufacturing industry, the imports of toys is down by 70 percent in the last three years. As per the data provided by the Ministry of Commerce, for HS Codes (Harmonized System Codes) 9503, 9504, and 9505, the import of toys to India has reduced significantly from USD 371 million in FY 2018-19 to USD 110 million in FY 2021-22 thus showing a decrease of 70.35 percent. Not just the decrease in imports, the exports of the 'Made In India' toys have risen by 61 percent in the last three years.

Commenting on this development, Anil Agrawal, Additional Secretary DPIIT said " in August 2020, Prime Minister had given a clarion call on “Rebranding the Indian Toy Story” and emphasized on the availability of right kind of toys for children, using toys as a learning resource, designing of toys based on Indian value system, Indian history, and culture to strengthen domestic designing and position India as a global manufacturing hub for toys. He said the industry had benefitted from several interventions by the government and the results show the success of the 'Make in India' programme. He added that the imports were mainly restricted to some components of the toys.

As per the figures given by the government, for the HS Code 9503, toy imports have decreased even faster, from USD 304 million in FY 2018-19 to USD 36 million in FY 2021-22 for HS Code 9503. Additionally, the exports have jumped by 61.38 percent over the same period. For HS Codes 9503, 9504, and 9505, the export of toys has increased from USD 202 million in FY 2018-19 to USD 326 million in FY 2021-22, up by 61.39 percent. For HS Code 9503, exports of toys have increased from USD 109 million in FY 2018-19 to USD 177 million in FY 2021-22.

To further propagate the success story of 'Make in India' in the domestic toy manufacturing sector and also to invite global customers and importers, the Ministry of Commerce organized the 13th Edition of Toy Biz B2B (Business to Business) International Exhibition from July 2-5 2022 at Pragati Maidan. The exhibition received a good response it witnessed a footfall of over 3,000 visitors from India international buyers’ delegation from Saudi Arabia, UAE, Bhutan, USA etc.

All the 96 exhibitors have showcased the diverse product category ranging from traditional plush toys, construction equipment toys, dolls, building block toys, board games, puzzles, electronic toys, educational toys, ride-ons, etc...

Interventions by the government for the toy sector.

Directorate General of Foreign Trade (DGFT) vide Notification No.33/2015-2020, dated 02.12.2019 mandated sample testing of each consignment and no permission for sale unless the quality testing is successful. In case of failure, the consignment is either sent back or destroyed at the cost of the importer.

Basic Customs Duty (BCD) on toys HS Code 9503 has been increased from 20 percent to 60 percent in February 2020.

The Government issued the toys (Quality Control) Order, 2020 on 25/02/2020 through which toys have been brought under compulsory Bureau of Indian Standards (BIS) certification with effect from January 01, 2021. As per the Quality Control Order (QCO), every toy shall conform to the requirements of relevant Indian Standard and bear the Standard Mark under a license from BIS as per Scheme-I of BIS (Conformity Assessment) Regulations, 2018. This QCO applies to both domestic manufacturers as well as foreign manufacturers who intend to export their toys to India.

QCO on Toys was amended on 11.12.2020 to exempt goods and articles manufactured and sold by artisans registered with Development Commissioner (M/o Textile) and also by registered proprietor and authorized users of a product registered as Geographical Indication by the Office of Controller General of Patents, Designs and Trademarks (CGPDTM).

BIS made special provisions on December 17, 2020, to grant a license to micro-scale units manufacturing toys without the testing facility for one year and not to insist on establishing an in-house facility.

BIS has granted 843 licenses to domestic manufacturers for safety of toys, out of these, 645 licenses have been granted for non-electric toys and 198 licenses granted for electric toys. In addition to this, 6 licenses have been granted to international toy manufacturers.