Workshop to support online selling, scaling domestic consumption and upskilling/reskilling workforce

The Prime Minister Shri Narendra Modi during his “Mann ki Baat” address in August 2020, expressed his desire to establish India as a global toy manufacturing hub. In order to fulfill the vision, the Government has undertaken a series of initiatives including formulation of a comprehensive National Action Plan for Toys (NAPT) to promote designing of toys, using toys as a learning resource, monitoring quality of toys, promoting indigenous toy clusters etc.

This has resulted in remarkable growth of Indian toy industry in FY 2022-23 in comparison to FY 2014-15, with the decline in imports by 52%, rise in exports by 239% and development of overall quality of the toys available in the domestic market.

In order to enable further growth, increased market access and development of new-age marketing skills, DPIIT is conducting a workshop with Flipkart and Indian Toy Industry on 12^th June 2024.  In the workshop, participation from Flipkart, Walmart and Toy Association of India is expected with around 100 participants.

The workshop aims to enhance India’s position and capabilities in the global toy supply chain. It will help the toy manufacturers understand the nuances of online selling which shall in turn help in the growth of sales and market access.

The Government has already undertaken a series of initiatives for development of Indian toy industry including:

1. Basic Customs Duty (BCD) on toys (HS code 9503) was increased from 20% to 60% in February 2020, and subsequently to 70% in March 2023.
2. Directorate General of Foreign Trade (DGFT) has mandated sample testing of each import consignment to curb the import of sub-standards toys
3. A Quality Control Order (QCO) for Toys was issued in 2020, with effect from 01.01.2021.
4. Special provisions were notified by BIS on 17.12.2020 to grant licences to micro sale units manufacturing toys without testing facility for one year and without establishing in-house testing facility, which was further extended by three years.
5. BIS has granted more than 1400 licences to domestic manufacturers and more than 30 licences to foreign manufacturers for manufacture of toys with BIS standard Marks
6. Cluster-based approach adopted to support domestic toy industry. The Ministry of MSME is supporting 19 toy clusters under the Scheme of Funds for the Regeneration of Traditional Industries (SFURTI), and the Ministry of Textiles is providing designing and tooling support to 26 toy clusters.
7. Several promotional initiatives have also been undertaken to promote indigenous toys and encourage innovation, including The Indian Toy Fair 2021, Toycathon, etc.

With the workshop, DPIIT aims to synergize the industry with online marketplaces, thereby enabling opportunities for growth.

Customs Duty Increase and Quality Control measures strengthen domestic toy industry access to online marketplaces and skills development. The DPIIT workshop aims to integrate domestic toy manufacturers with online marketplaces to scale consumption and develop marketing skills while aligning with trade and quality measures: increased Basic Customs Duty on toys, DGFT sample testing of imports, a Quality Control Order, BIS licensing provisions for small manufacturers, cluster development support under SFURTI, and promotional initiatives to expand market access.