240% increased growth in toys export

Dec 22: The Government has taken several steps to restrict the import of sub-standard and unsafe toys and to promote the domestic toy industry. As a result of various steps taken by the Government, the volume of import of toys into the Indian market has shown a consistently decreasing trend. The import of toys (HSN Codes 9503, 9504, 9505) to India has decreased from USD 332.55 million in 2014-15 to USD 109.72 million in 2021-22 i.e. a decrease of approximately 67%. Further, the export of Toys (HSN Codes 9503, 9504, 9505) from India has increased from USD 96.17 million in 2014-15 to USD 326.63 million in 2021-22, i.e. an increase of approximately 240%.

The Government of India has taken several measures to promote indigenous toys which are broad as:-

  1. Formulation of a comprehensive National Action Plan for Toys to promote the designing of toys based on Indian values, culture and history, using toys as a learning resource organizing hackathons and grand challenges for toy designing and manufacturing monitoring the quality of toys, promoting indigenous toy clusters, etc.
  2. Basic Customs Duty (BCD) on toys (HS code 9503) was increased from 20% to 60% in February 2020.
  3. DGFT has mandated sample testing of each import consignment to curb the import of sub-standard toys.
  4. A quality control order for toys has been issued on 25.02.2020 by Department for Promotion of Industry and Internal Trade (DPIIT) through which toys have been brought under compulsory certification from the Bureau of Indian Standards (BIS) w.e.f. 01.01.2021.
  5. Amendment in Quality Control Order for Toys on 11.12.2020 to exempt goods and articles manufactured and sold by artisans registered with the Development Commissioner, Ministry of Textiles and by registered proprietor and authorized users of a product registered as Geographical Indication by the Office of Controller General of Patents, Designs and Trademarks.
  6. Special provisions were notified by BIS on 17.12.2020 so as to grant licenses to micro-scale units manufacturing toys without the testing facility for one year and without establishing an in-house testing facility.
  7. BIS has granted 1001 licenses to domestic manufacturers and 28 licenses to foreign manufacturers for the manufacture of toys with BIS standard Marks.

Further, to promote the MSME sector including the toy industry, the Ministry of MSME is implementing various schemes for providing credit support for new enterprise creation, technology upgradation, skill development and infrastructure development. Under Prime Minister’s Employment Generation Programme (PMEGP), margin money assistance of up to 35% of the project cost is being provided for the unit costing up to Rs. 50 lakh for the manufacturing sector and Rs. 20 lakh for the service sector.  Under the Scheme of Funds for   Regeneration of Traditional Industries (SFURTI), assistance is provided for the creation of Common Facility Centres with the latest machines, design centres, skill development, etc.  A total of 19 Toy Clusters have been approved under the scheme benefitting 11749 artisans with an outlay of Rs. 55.65 crores.

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