Context: Indian Toy industry witnesses 52% decline in imports and 239% rise in exports in FY 2022-23 in comparison to FY 2014-15.

News:

A case study on the "Success Story of Made in India Toys" conducted by IIM Lucknow for DPIIT highlights positive trends in the Indian toy industry:

• Dependence on imported inputs decreased significantly from 33% to 12%, showcasing increased self-sufficiency in the toy manufacturing sector.
• Gross sales value witnessed a Compound Annual Growth Rate (CAGR) of 10%, indicating substantial economic growth in the industry.
• Labor productivity has shown an overall increase, demonstrating the positive impact of government initiatives on efficiency.
• India is emerging as a top toy-exporting nation, benefitting from integration into the global toy value chain and enjoying zero-duty market access in countries like UAE and Australia.

The government has implemented several interventions and initiatives, including:

• 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.
• 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.
• 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 01.01.2021.
• 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.
• 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
• 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, Toycathon, etc.

To position India as a competitive alternative to major toy hubs like China and Vietnam, collaborative efforts between the government and the toy industry are crucial.Key recommendations include advancements in technology, embracing e-commerce, encouraging partnerships and exports, investing in brand-building, engaging with educators and parents, valuing cultural diversity, and collaborating with regional artisans.