Toy industry needs to think big to boost manufacturing, exports: Comm Ministry

NEW DELHI: The Commerce and Industry Ministry on Tuesday suggested the domestic toy industry to work on big ideas, and capacity building to further push manufacturing and exports from the country.

Additional Secretary in the Department for Promotion of Industry and Internal Trade (DPIIT) Anil Agarwal said the government’s initiatives like increasing import duty, and issuance of quality control order has helped in cutting imports and promoting manufacturing, and now industry has to “think on big ideas”.

“Their revenues have grown, but to become a unicorn (companies having valuation of over $1 billion), the industry has to reach to another level. They need to bring professionalism in their management besides capacity building,” Agarwal told reporters in the Toy Fair at Pragati Maidan.

The fair was organised after a gap of three years due to COVID. As many as 96 stalls were there showcasing made in India toys.

Basic Customs Duty (BCD) on toys was increased from 20 per cent to 60 per cent in February, 2020 to promote local manufacturing.

The government issued Toys (Quality Control) Order, 2020 in February 2020. Under this, toys have to conform to the requirements of relevant

Indian standards and bear the standard mark under a licence. It is applicable to both domestic as well as foreign manufacturers who intend to export their toys to India.

Agarwal said the import of toys into India has decreased from $304 million in 2018-19 to $36 million in 2021-22.

On the other hand, exports have increased from $109 million in 2018-19 to $177 million in 2021-22.

Manu Gupta, promotor of Playgro Toys India, said the government’s initiatives are helping the industry and pushing manufacturing and cutting down imports.

“We need some more government support so that the industry reaches to next level and generate jobs and boost exports,” he said, adding that the global toy industry is about $120 billion and India’s share is low.

National Toy Policy and Production Linked Incentive scheme would help in promoting the growth of the sector by pushing the scale, Gupta added.

Soft toys maker Jasco Handicrafts’ Director Yashwinder S Kohli said they are getting good orders from Middle Eastern countries.

“Government’s efforts are helping us in a big way. My revenues have increased at a healthy pace and I have increased manufacturing also,” he added.

Basic Customs Duty (BCD) on toys was increased from 20% to 60% in February, 2020 to promote local manufacturing