Toy imports down 52%, exports up 239% in 8 years: Commerce Ministry

Utkarsh Classes Last Updated 08-01-2024

Toy imports down 52%, exports up 239% in 8 years: Commerce Ministry

Industry 5 min read

According to the Ministry of Commerce, the Indian toy industry has recorded a 52% decline in imports and a 239% increase in exports in FY 2022-23 compared to FY 2014-15. Also, the overall quality of toys in the domestic market has improved significantly.

This information has come out in a study on "Success Story of Toys Made in India" by the Indian Institute of Management Lucknow on behalf of the Department for Promotion of Industry and Internal Trade.

"Highlights of Study By IIM, Lucknow" :

The number of manufacturing units has doubled due to the government's dedicated efforts over 6 years from 2014 to 2020.
Dependence on imported goods has reduced from 33 percent to 12 percent.
A 10 percent CAGR increase in gross sales value and an overall increase in labour productivity was recorded.

India as top toy exporting country:

Zero-duty market access for domestically manufactured toys has increased demand in countries like the UAE and Australia. India is also emerging as a major exporter due to the country's integration into the global toy value chain.
India can be positioned as a viable alternative to the current toy hubs of the world, i.e. China and Vietnam.

Obstacles to India becoming a global toy manufacturing centre:

For India to become a global toy hub, it is necessary to work in the following areas:
- Advances in technology for
- Adopting e-commerce
- To encourage partnerships and exports
- Investment in brand-building
- Connect with teachers and parents to communicate with children
- To value cultural diversity
- Continuous collaborative efforts of the toy industry and the government are necessary to collaborate with regional artisans, etc.

There is a need for a strategic action plan to address these problems and promote growth in the Indian toy industry. The government has implemented several interventions and initiatives in this regard, including:

A comprehensive NAPT comprising 21 specific action points was formulated and implemented by 14 Central Ministries/Departments with DPIIT as the coordination body.
Basic customs duty (BCD) on toys increased from 20% to 60% in February 2020 and 70% in March 2023.
A Quality Control Order (QCO) for toys was issued in 2020, effective from 1 January 2021.
BIS has granted over 1200 licenses to domestic manufacturers and over 30 licenses to foreign manufacturers for manufacturing toys bearing the BIS Standard Mark.
The cluster-based approach was adopted to support the domestic toy industry.
The MSME Ministry supports 19 toy production centres under the Scheme of Fund for Rejuvenation of Traditional Industries (SFURTI).
The Textiles Ministry is helping 13 toy production centers in designing toys and providing necessary equipment.
Several promotional initiatives have also been taken to promote indigenous toys and encourage innovation, including The Indian Toy Fair 2021, Toycathon, etc.
Prime Minister Modi expressed his desire to establish India as a global toy manufacturing hub in his "Mann Ki Baat" radio program in August 2020.