The import of toys is down by 70% in the last three years. For HS Codes 9503, 9504, and 9505, the import of toys to India has reduced from USD 371 Mn in FY 2018-19 to USD 110Mn in FY 2021-22 thus showing a decrease of 70.35 percent. For the HS Code 9503, toys imports have decreased even faster, from USD 304 Mn in FY 2018-19 to USD 36 Mn in FY 2021-22 for HS Code 9503. Additionally, the exports have jumped by 61.38% over the same period. For HS Codes 9503, 9504, and 9505, the export of toys has increased from USD 202 Mn in FY 2018-19 to USD 326 Mn in FY 2021-22, up by 61.39 percent. For HS Code 9503, exports of Toys have increased from USD 109 Mn in FY 2018-19 to USD 177 Mn in FY 2021-22.
Speaking to media during the 13th Edition of Toy Biz B2B (Business to Business) International Exhibition from 2-5 July 2022 at Pragati Maidan, New Delhi today, Shri Anil Agrawal said that in his address in “Mann ki Baat” 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 a number of interventions by the government and results show the success of Make in India programme. He added that the imports were mainly restricted to some components of the toys.
Interventions by the government for the Toy Sector
a) 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.
b) Basic Custom Duty (BCD) on Toys-HS Code-9503 has been increased from 20% to 60% in February, 2020.
c) The Government issued 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 01/01/2021. 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 licence from BIS as per Scheme-I of BIS (Conformity Assessment) Regulations, 2018. This QCO is applicable to both domestic manufacturers as well as foreign manufacturers who intend to export their toys to India.
d) 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).
e) BIS made special provisions on 17.12.2020 so as to grant license to micro scale units manufacturing toys without testing facility for one year and not to insist on establishing in-house facility.
f) BIS has granted 843 licenses to domestic manufacturers from 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.
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. All the toys products were ‘Made In India’ product manufactured domestically by small, medium and large enterprises. The Toys bearing GI tag such as Chennapatna, Varanasi etc. are also being displayed. The exhibition is showcasing toys based on Indian ethos & value system duly endorsing ‘Vocal for Local’ theme. Each toy category has affordable and high-end versions. This is a major shift from the 12th edition of the exhibition held in 2019, wherein of 116 stalls, 90 stalls exhibited only imported toys. This exhibition witnessed a footfall of over 3,000 visitors from India and international buyers’ delegation from Saudi Arabia, UAE, Bhutan, USA etc.