Lok Sabha Question No. 2551 (UNSTARRED), answered on 2022-12-22
Subject: Toy Industry
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: Bidyut Baran Mahato, Sudheer Gupta, Sambhajirao Mane Dhairyasheel, Manoj Kumar Tiwari, Subrata Pathak, Shrirang Appa Barne, Sanjay Sadashivrao Mandlik

## GOVERNMENT OF INDIA MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES

## LOK SABHA UNSTARRED QUESTION NO. 2551

## TO BE ANSWERED ON 22.12.2022

## TOY INDUSTRY

2551.        SHRI BIDYUT BARAN MAHATO:

SHRI SUDHEER GUPTA:

SHRI DHAIRYASHEEL SAMBHAJIRAO MANE:

SHRI MANOJ TIWARI:

SHRI SUBRAT PATHAK:

SHRI SHRIRANG APPA BARNE:

SHRI SANJAY SADASHIVRAO MANDLIK:

Will the Minister of MICRO, SMALL AND MEDIUM ENTERPRISES be pleased to state:

- (a) whether China has captured toy industry and if so, the details thereof;
- (b) whether efforts are being made to address the problems related to capacity building, design innovation and improvement in machinery to boost toy industry and if so, the details thereof;
- (c) whether  the  Government  proposes  to  impart  training  and  apprise  intricacies  of  the industry to unemployed youth desirous of starting toy industry and if so, the details thereof;
- (d) whether the Government proposes to provide loans on low interest rates available to the enterprising unemployed youth desirous of setting up said enterprise and if so, the details thereof; and
- (e) the steps taken/being taken by the Government for generating maximum employment to promote this industry in the country?

## ANSWER

## MINISTER OF STATE FOR MICRO, SMALL AND MEDIUM ENTERPRISES (SHRI BHANU PRATAP SINGH VERMA)

(a)  to  (e):       The Government has taken several steps to restrict import of sub-standard and unsafe toys and to promote domestic toy industry. As a result of various steps taken by the Government, the volume of import of toys into the Indian market has shown a consistently decreasing trend. The import of toys (HSN Codes 9503, 9504, 9505) to India has decreased from USD 332.55 million in 2014-15 to USD 109.72 million in 2021-22 i.e. a decrease of approximately 67%. Further, export of Toys (HSN Codes 9503, 9504, 9505) from India have increased  from  USD  96.17  million  in  2014-15  to  USD  326.63  million  in  2021-22,  i.e.  an increase of approximately 240%.

The  Government  of  India  has  taken  several  measures  to  promote  indigenous  toys which are broadly as under:-

- (i) Formulation of a comprehensive National Action Plan for Toys to promote designing of  toys  based  on  Indian  values,  culture  and  history,  using  toys  as  a  learning  resource organizing hackathons and grand challenges for toys designing and manufacturing monitoring quality of toys, promoting indigenous toy cluster, etc

(ii) Basic Customs Duty (BCD) on toys (HS code 9503) was increased from 20% to 60% in February, 2020.

(iii) DGFT has mandated sample testing of each import consignment to curb the import of sub-standards toys. (iv) A quality  control  order  for  toys  has  been  issued  on  25.02.2020  by  Department  for Promotion  of  Industry  and  Internal  Trade  (DPIIT)  through  which  toys  have  been  brought under compulsory certification from Bureau of Indian Standards (BIS) w.e.f. 01.01.2021. (v) Amendment in Quality Control Order for Toys on 11.12.2020 to exempt goods and articles  manufacture  and  sold  by  artisans  registered  with  Development  Commissioner, Ministry of Textiles and by registered proprietor and authorized users of a product registered as  Geographical  Indication  by  the  Office  of  Controller  General  of  Patents,  Designs  and Trademarks. (vi) Special provisions were notified by BIS on 17.12.2020 so as to grant license to micro sale units manufacturing toys without testing facility for one year and without establishing inhouse testing facility. BIS have granted 1001 licenses to domestic manufacturers and 28 licenses to foreign

(vii) manufacturers for manufacture of toys with BIS standard Marks.

Further, to promote MSME sector including toy industry, the Ministry of MSME is implementing  various  schemes  for  providing  credit  support  for  new  enterprise  creation, technology  upgradation,  skill  development  and  infrastructure  development.  Under  Prime Minister's  Employment  Generation  Programme  (PMEGP),  margin  money  assistance  upto 35%  of  the  project  cost  is  being  provided  for  the  unit  costing  upto  Rs.  50  lakh  for manufacturing sector and Rs. 20 lakh in the service sector.  Under the Scheme of Funds for Regeneration  of  Traditional  Industries  (SFURTI),  assistance  is  provided  for  creation  of Common Facility  Centres  with  latest  machines,  design  centres,  skill  development,  etc.    A total  of  19  Toy  Clusters  have  been  approved  under  the  scheme  benefitting  11749  artisans with an outlay of Rs. 55.65 crore.

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