Indian toymakers are ramping up production as demand grows; eyes on global markets

Favorable government policies have boosted domestic manufacturing and helped the industry explore global markets and expand exports. Rising tariffs on imported toys and the imposition of Indian Bureau of Standards (BIS) certification requirements for imports have given the necessary boost to India’s toy industry.

The demand for toys based on desi movie characters, mythological characters and superheroes such as Chota Bheem is increasing.

India’s toy industry is breaking away from the dominance of China and some other countries, according to industry experts.

Manufacturers are increasing their production capacity to meet growing local and international demand, with “made in India” taking a clear advantage over imports.

According to figures released by the Ministry of Trade and Industry, India’s toy imports have seen a sharp decline from USD 304 million in 2018-19 to USD 36 million in 2021-22.

On the other hand, exports increased from $109 million in 2018-2019 to $177 million in 2021-22, he added.

The sector is also looking for new markets to increase its exports to countries in the Middle East and Africa.

Toy Association Of India Chairman Ajay Agarwal said India’s toy industry is growing as the government has required domestic players to obtain BIS (Bureau of Indian Standards) certification for import and has also increased customs duties.

“These are the two reasons why the import of toys has declined,” Agarwal said. According to him, the value of retail sales was approximately 20,000 crore pre-pandemic and is expected to grow further this year due to increased demand.

The toy industry is expected to double from 2019-20 estimates of $1 billion to $2 billion by 2024-25, according to a joint report by industry body FICCI and KPMG,

Agarwal added: “Three years ago, 80% of toys were imported and the remaining 20% ​​came from domestic manufacturers, but now the situation has changed…Imports have been reduced by 60-70% and many players do not what to import. components and assembly of the toy in India.”

Panda International promoter Rajeev Batra says the government’s decision to ban the sale of uncertified toys in the country has played a ‘game-changer’ role in boosting domestic manufacturing and reducing imports from China .

He said the government takeover helps the industry to set up manufacturing units.

Manu Gupta, promoter of Playgro Toys India, also said additional government support would help the industry reach the next level, generate jobs and boost exports.

“The global toy industry is worth around $120 billion and India’s share is small. A national toy policy and production-linked incentive program would help promote the growth of the sector,” Gupta said. .

The industry has suggested the government introduce a production-linked incentive program for the sector and a separate export promotion board.

The favorable policies of the government

The government has mandated all toy manufacturers and importers to have BIS (Bureau of Indian Standards) quality certification, since January 2021.

More than 800 manufacturers in the toy industry, mainly from the micro, small and medium-sized enterprise (MSME) sector, are now BIS certified.

Anil Agarwal, additional secretary of the Department of Promotion of Industry and Internal Trade (DPIIT), said government initiatives such as increasing import duties and issuing a control order for quality have helped to reduce imports and promote manufacturing, and now the industry must “think big ideas”.

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

Two years ago, in the second half of 2020, Prime Minister Narendra Modi promoted and called on startups and entrepreneurs to “team up for toys”.

He asserted that the country has the talent and ability to become a hub for the industry, noting India’s tiny share of the global toy market of more than $7 billion.

With entries from PTI.

Catch all the trade news, market news, breaking news and latest updates on Live Mint. Download the Mint News app to get daily market updates.

More less

To subscribe to Mint Bulletins

* Enter a valid email

* Thank you for subscribing to our newsletter.