Make-in-India impact: toy imports drop by 70%, exports up 61%

New Delhi: Make-in-India initiative of Prime Minister Narendra Modi's government has yielded positive results for the toy sector in the country with imports down by 70 per cent while 61 per cent surge in exports in the last three years, the government data showed on Tuesday.

For HS Codes 9503, 9504, and 9505, the value of import of toys in India fell from $371 million in the financial year 2018-19 to $110 million in the financial year 2021-22, showing a decline of 70.35 per cent. For the HS Code 9503, toy imports have decreased even faster, from $304 million in FY 2018-19 to $36 million in FY 2021-22 for HS Code 9503, according to data released by the Ministry of Commerce and Industry. The exports have jumped by 61.38 per cent over the same period.

For HS Codes 9503, 9504, and 9505, the export of toys has increased from $202 million in FY 2018-19 to $326 million in FY 2021-22, up by 61.39 per cent. For HS Code 9503, exports of toys have increased from $109 million in FY 2018-19 to $177 million in FY 2021-22.

Speaking to media during the 13th edition of Toy Biz B2B (Business to Business) International Exhibition, Anil Agrawal, Additional Secretary, Department for Promotion of Industry and Internal Trade (DPIIT), highlighted the clarion call given by the prime minister on "Rebranding the Indian Toy Story".

He emphasised on the availability of right kind of toys for children, using toys as a learning resource, designing of toys based on the Indian value system, Indian history, and culture to strengthen the domestic design and position India as a global manufacturing hub for toys.

He said the industry has benefitted from a number of 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 toys.

The interventions taken by the government to promote Make-in-India in toy sector include bringing it under compulsory Bureau of Indian Standards (BIS) certification, quality testing and an increase in customs duty.

In February 2020, the government increased basic customs duty on toys from 20 per cent to 60 per cent.

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.

QCO on Toys was amended in December 2020 to exempt goods and articles manufactured and sold by artisans registered with Development Commissioner (M/o Textile) and also by registered proprietors 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 17th December 2020 so as to grant 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 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.