New Delhi: Major retailers from the US and Europe are expressing interest in sourcing toys from Indian manufacturers and are willing to help these companies meet their compliance requirements, according to a government official. The Department for Promotion of Industry and Internal Trade (DPIIT) is helping Indian manufacturers tie up with global players to meet compliance provisions and increase exports from India.
Manu Gupta, Chairman of the Toy Association of India, stated that a US-based retailer approached the industry to procure toys in three categories, including ride-on and outdoor toys and mechanical and electrical toys, worth $400 million. Gupta noted that DPIIT officials are helping the industry engage with these world players and obtain orders.
These retailers typically purchase goods from companies that meet their specific product and social compliances. They are prepared to hand-hold, upskill and reskill the existing workforce of Indian toy makers to improve their efficiencies, Gupta added.
An Italian firm has also approached the Toy Association of India to source toys from India. However, the sector is experiencing a slowdown in global market demand and the promotion of Indian brands. Gupta believes that the government could help promote brands, as establishing a name is a long process.
Initiatives of DPIIT and the finance ministry, such as releasing quality control orders and increasing import duty on toys, have already helped the sector significantly reduce imports of substandard toys from countries such as China and boost exports to the world. In 2021-22, the country’s toy exports stood at Rs 2,601 crore, and from April-December 2022-23, toy exports reached Rs 1,017 crore. In contrast, from April-December 2013-14, the toy exports were at Rs 167 crore. The overall import of toys in India reduced by 70% to Rs 870 crore in 2021-22.
In February 2020, import duty on toys increased from 20% to 60% and later to 70% this year to discourage imports. The government is also considering rolling out a fiscal incentive scheme – PLI (production-linked incentive) for toys.
In 2020, the government issued a Toys (Quality Control) Order, which stipulated that toys must conform to the requirements of relevant Indian standards and bear the standard mark under a licence. This order is applicable to both domestic and foreign manufacturers who intend to export toys to India. It is intended to protect children under the age of 14 from being exposed to sub-standard or toxic toys.
Enforcement agencies have seized over 41,000 sub-standard toys since the implementation of mandatory quality certification in January 2021, according to the government.
