Lok Sabha Question No. 1670 (UNSTARRED), answered on 2022-07-27
Subject: Toy Industry
Ministry: COMMERCE AND INDUSTRY
Asked by: Sanganna Amarappa Karadi, Umesh G. Jadhav, Jaisiddeshwar Shivacharya Mahaswamiji

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY

## DEPARTMENT FOR PROMOTION OF INDUSTRY AND INTERNAL TRADE LOK SABHA

UNSTARRED QUESTION NO. 1670. TO BE ANSWERED ON WEDNESDAY, THE 27 TH  JULY, 2022.

## TOY INDUSTRY

1670.  SHRI SANGANNA AMARAPPA: DR. UMESH G. JADHAV: SHRI SHA.BRA.DR.JAI SIDDESHWAR SHIVACHARYA MAHASWAMIJI:

Will the Minister of COMMERCE AND INDUSTRY be pleased to state: वाणिज्य एवं उद्योग मंत्री

- (a) whether Indian toy industry is facing stiff competition from Chinese toys and if so, the details thereof including the steps taken by the Government to increase the domestic production/ reduce imports of toys;
- (b) whether  the  Government  is  planning  to  include  toy  industry  under  the Production Linked Incentive (PLI) scheme in the near future;
- (c) if so, the details thereof and if not, the reasons therefor; and
- (d) the details and the value of exports and the percentage growth of this industry in   the last three years?

## ANSWER

## वाणिज्य एवं उद्योग मंत्रालय में राज्य मंत्री ( श्री सोम प्रकाश ) THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE & INDUSTRY (SHRI SOM PARKASH)

- (a): Government is providing all round support to domestic toy industry to make them more competitive. Some of the measures include promoting Made in India toys; 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 quality of toys; restricting imports of sub-standard and unsafe toys and promoting indigenous toy clusters.

Details of some steps taken by Government to increase the domestic production and reduce imports of toys are enclosed at Annexure-A.

- (b) & (c): No  sir.  There  is  no  such  proposal  with  Government  to  include  toy industry under Production Linked Incentive (PLI) Scheme at present.
- (d): Exports of toys have increased by 61.38% in the last three years, from USD 202 Million in Financial Year (FY) 2018-19 to USD 326 Mn in FY 2021-22. The import of toys has reduced by 70% in the last three years, from USD 371 Mn in FY 2018-19 to USD 110Mn in FY 2021-22. The value  of  exports  and  import  of  toys  during  2018-19  to  2021-22  are enclosed at Annexure-B .

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## ANNEXURE  REFERRED  TO  IN  REPLY  TO  PART  (a)  OF  THE  LOK  SABHA UNSTARRED QUESTION NO. 1670 FOR ANSWER ON 27.07.2022.

## The steps taken by the Government to increase the domestic production, reduce imports of toys

- i. Directorate  General  of  Foreign  Trade  (DGFT)  vide  Notification  No.33/20152020, dated 02.12.2019 has mandated sample testing of each consignment and no permission for sale unless the quality testing is successful. In case of failure,  the  consignment  is  either  sent  back  or  destroyed  at  the  cost  of  the importer.
- ii. Basic Custom Duty (BCD) on Toys-HS Code-9503 has been increased from 20% to 60% in February, 2020.
- iii. The Government has  issued Toys (Quality Control) Order, 2020 on 25/02/2020 through  which  toys  have  been  brought  under  compulsory  Bureau  of  Indian Standards (BIS) certification with effect from 01/01/2021. As per the Quality Control Order (QCO), every toy shall conform to the requirements of relevant Indian Standard and bear the Standard Mark under a licence from BIS as per Scheme-I  of  BIS  (Conformity  Assessment)  Regulations,  2018.  This  QCO  is applicable to both domestic manufacturers as well as foreign manufacturers who intend to export their toys to India.
- iv. Ministry of Education organized Toycathon 21, a unique effort by 6 Ministries & Departments to crowd- source solutions to problems faced by toy industry. Over 1.2 lakh registrants for the event and submitted over 17,000 ideas and 13900 teams formed to win a large number of prizes up to Rs. 50 lakh.
- v. A Virtual Toy Fair 'The India Toy Fair, 2021 (TITF)'  was organized from 27 th February to 04 th  March 2021. About 1074 exhibitors from 30 states and UTs covering  68  clusters  were  on  boarded  onto  the  virtual  platform.  11  States participated as 'Partner States'. More than 25 lakhs visitors participated in the fair. 103 eminent speakers across the globe attended 41 sessions/webinars.
- vi. Under the Scheme of Fund for Regeneration of Traditional Industries (SFURTI) of Ministry of Micro, Small & Medium Enterprises (MSME), 19 toy clusters have been approved. Out of these 19 clusters, 9 are approved in Madhya Pradesh, 3  in  Rajasthan,  2  in  Uttar  Pradesh,  2  in  Karnataka  and  1  each  in  Andhra Pradesh, Maharashtra and Tamil Nadu. These clusters are Kondapalli Wooden Toy Cluster, Channapatna Lacware Toys Cluster , Sagara Woodcrafts Cluster, Toy  Cluster  Budni,  Soft  Toys  and  Sportswear  Cluster,  Bamboo  based Indigenous  Toys  Cluster,  Traditional  Indian  Bamboo  and  Wood  based  toys cluster,  Wood  based  traditional  Indian  Toys  and  Associated  Fabric  Based Accessories  Cluster,  Bamboo  Craft  and  Bamboo  Toys  Cluster,  Soft  Toys Cluster, Indore Mahila Garment Leather Toys and Jute Product Cluster, Wood Based Toys Cluster, Plush Toys Cluster, Wood Craft Cluster, Traditional Indian Fabric  based  Toys  Cluster,  Deep  Hast  Shilp  Wooden  Toys  Cluster,  Palm Leaves Toys and Leather Products Cluster, Wooden Toys and Carving Cluster and  Lucknow  Soft  Toys  Cluster.  These  clusters  propose  to  benefit  11,749 artisans with a Government of India assistance of Rs. 55.65 crore.
- vii. Ministry of Textiles has identified 13 clusters across the country with a view for the  overall  development  of  cluster  artisans.  These  clusters  are  located  at Channapatna,  Kinhal,  Kondapalli,  Etikopaka,  Nirmal,  Tanjore,  Cudappah, Varanasi Chitrakoot, Jaipur, Dhubri, Bishnupur and Indore.
- viii. DPIIT organized 'Toy Business League' on 4th -5th January 2022 for enabling a meaningful dialogue between innovators and toys manufacturers with a view to creating collaboration opportunities for Toycathon 2021 winners and realizing the vision of designing toys based on Indian values, culture and history.
- ix. Government  of  India  has  signed  Free  Trade  Agreement  with  United  Arab Emirates(UAE). India- UAE Comprehensive Economic Partnership Agreement (CEPA) has come into effect from 1st May 2022. Under this agreement UAE provides zero duty market access for exports of Indian toys.

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## ANNEXURE-B

## ANNEXURE  REFERRED  TO  IN  REPLY  TO  PART  (d)  OF  THE  LOK  SABHA UNSTARRED QUESTION NO. 1670 FOR ANSWER ON 27.07.2022.

## Details of Export of Toys during 2018-19 to 2021-22

| Values in US$ Million   | Values in US$ Million                                                  | Values in US$ Million                                                          | Values in US$ Million                                                                          |
|-------------------------|------------------------------------------------------------------------|--------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------|
| Financial Year          | HSN Code 9503                                                          | HSN Code 9504                                                                  | HSN Code 9505                                                                                  |
|                         | Other toys, reduced- size models and similar recreational models, etc. | Video Game Consoles and Machines, Articles for funfair, table or parlour games | Festive, carnival or other entertainment articles, including conjuring tricks and novelty joke |
| 2018-2019               | 109.28                                                                 | 19.82                                                                          | 74.36                                                                                          |
| 2019-2020               | 129.60                                                                 | 27.42                                                                          | 81.73                                                                                          |
| 2020-2021               | 141.21                                                                 | 25.84                                                                          | 71.90                                                                                          |
| 2021-2022               | 177.04                                                                 | 32.27                                                                          | 117.32                                                                                         |

Source: Department of Commerce Website

Details of Import of Toys during 2018-19 to 2021-22

| Values in US$ Million   | Values in US$ Million                                                  | Values in US$ Million                                                          | Values in US$ Million                                                                          |
|-------------------------|------------------------------------------------------------------------|--------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------|
| Financial Year          | HSN Code 9503                                                          | HSN Code 9504                                                                  | HSN Code 9505                                                                                  |
|                         | Other toys, reduced- size models and similar recreational models, etc. | Video Game Consoles and Machines, Articles for funfair, table or parlour games | Festive, carnival or other entertainment articles, including conjuring tricks and novelty joke |
| 2018-2019               | 304.08                                                                 | 53.03                                                                          | 14.58                                                                                          |
| 2019-2020               | 279.25                                                                 | 48.38                                                                          | 16.30                                                                                          |
| 2020-2021               | 129.63                                                                 | 38.12                                                                          | 10.17                                                                                          |
| 2021-2022               | 35.88                                                                  | 54.95                                                                          | 18.89                                                                                          |

Source: Department of Commerce Website

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