Lok Sabha MPs Manoj Tiwari and Nishikant Dubey posed a question on Thursday regarding the domestic production of toys in the last three years and how it is affected by the import of toys.
In a written reply, the Union Minister of State for Commerce and Industry, Som Parkash, highlighted the government’s proactive measures to increase the domestic toy industry. These efforts have led to a significant reduction in toy imports, dropping by 57% from USD 371.69 million in 2018–19 to USD 158.70 million in 2022–23, while toy exports have surged by 60% from USD 203.46 million to USD 325.72 million over the same period.
The minister said that the government has taken several steps for the development of the toy industry.
On December 2, 2019, the Directorate General of Foreign Trade (DGFT) issued a notification that made it obligatory to conduct sample testing of each consignment and gave no permission for sale unless the quality testing was successful. In case of failure, the consignment is either sent back or destroyed at the cost of the importer.
There was an initial rise in the Basic Custom Duty (BCD) on toys from 20% to 60% in February 2020, which was subsequently increased to 70% by March 2023.
However, in terms of quality control, the Toys (Quality Control) Order was introduced on February 25, 2020, requiring compulsory certification from the Bureau of Indian Standards (BIS) starting January 1, 2021. This certification applies to both domestic and foreign manufacturers who intend to export their toys to India.
Talking about quality control, the minister said that the QCO on toys was amended on December 11, 2020, to exempt goods and articles manufactured and sold by artisans registered with the Development Commissioner, Ministry of Textiles, and also by registered proprietors and authorised users of a product.
Furthermore, on December 17, 2020, the Bureau of Indian Standards (BIS) introduced specific provisions. These provisions allowed microscale units engaged in toy manufacturing, lacking testing facilities, to obtain licences for one year without the obligation of establishing an in-house facility.
Answering on the promotion of the toy business in the domestic market, the minister said that as of July 2023, the Bureau of Indian Standards (BIS) has issued 1318 licences to domestic toy manufacturers and 38 licences to foreign manufacturers, ensuring toy safety.
The Government of India developed a comprehensive ‘National Action Plan’ for Toys in 2020 to boost local manufacturing and incentivize toy and handicraft manufacturers to make India the next global hub of Toys.
