Lok Sabha Question No. 3222 (UNSTARRED), answered on 2023-08-09
Subject: Toy Industry
Ministry: COMMERCE AND INDUSTRY
Asked by: Manoj Kumar Tiwari, Nishikant  Dubey

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY DEPARTMENT FOR PROMOTION OF INDUSTRY AND INTERNAL TRADE

## LOK SABHA

UNSTARRED QUESTION NO. 3222.

TO BE ANSWERED ON WEDNESDAY, THE 09 TH  AUGUST, 2023.

## TOY INDUSTRY

3222.  SHRI MANOJ TIWARI: DR. NISHIKANT DUBEY:

Will the Minister of COMMERCE AND INDUSTRY be pleased to state:

## वाणिज्य एवं उद्योग मंत्री

- (a) the details of the domestic production of toys during each of the last three years and the current year;
- (b) whether the domestic toy industry is affected by import of toys from other countries;
- (c) if so, the details thereof along with the corrective steps taken by the Government in this regard; and
- (d) whether the Government has received proposals from States to establish toy units to promote the toys business and if so, the details thereof and the action taken by the Government in this regard?

## 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) to (c): Domestic toy production data is centrally not maintained. However, the Government has taken proactive steps 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 by 57% from USD 371.69 million in 2018-19 to USD 158.70 million in 2022-23. Exports of Toys (HSN code 9503, 9504, 9505) from India have increased by 60% from USD 203.46 million in 2018-19 to USD 325.72 million in 2022-23.

Table A. Details of Import of Toys during 2018-19 to 2022-23

| Values in USD Million   | Values in USD Million                                                                 | Values in USD Million                                                                          | Values in USD Million                                                                                         |             |
|-------------------------|---------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------|-------------|
| Financial Year          | HSN Code 9503: Other toys, reduced- size models and similar recreational models, etc. | HSN Code 9504: Video Game Consoles and Machines, Articles for funfair, table, or parlour games | HSN Code 9505: Festive, carnival or other entertainment articles, including conjuring tricks and novelty joke | Grand Total |
| 2018-19                 | 304.08                                                                                | 53.03                                                                                          | 14.58                                                                                                         | 371.69      |
| 2019-20                 | 279.25                                                                                | 48.38                                                                                          | 16.30                                                                                                         | 343.93      |
| 2020-21                 | 129.63                                                                                | 38.12                                                                                          | 10.17                                                                                                         | 177.92      |
| 2021-22                 | 35.88                                                                                 | 54.95                                                                                          | 18.89                                                                                                         | 109.72      |
| 2022-23                 | 62.39                                                                                 | 75.81                                                                                          | 20.50                                                                                                         | 158.70      |

Source: Department of Commerce Website

Table B. Details of Export of Toys during 2018-19 to 2022-23

| Values in USD Million   | Values in USD Million                                                                 | Values in USD Million                                                                         | Values in USD Million                                                                                         |             |
|-------------------------|---------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------|-------------|
| Financial Year          | HSN Code 9503: Other toys, reduced- size models and similar recreational models, etc. | HSN Code 9504: Video Game Consoles and Machines, Articles for funfair, table or parlour games | HSN Code 9505: Festive, carnival or other entertainment articles, including conjuring tricks and novelty joke | Grand Total |
| 2018-19                 | 109.28                                                                                | 19.82                                                                                         | 74.36                                                                                                         | 203.46      |
| 2019-20                 | 129.60                                                                                | 27.42                                                                                         | 81.73                                                                                                         | 238.75      |
| 2020-21                 | 141.21                                                                                | 25.84                                                                                         | 71.90                                                                                                         | 238.95      |
| 2021-22                 | 177.04                                                                                | 32.27                                                                                         | 117.32                                                                                                        | 326.63      |
| 2022-23                 | 153.88                                                                                | 34.44                                                                                         | 137.40                                                                                                        | 325.72      |

## Steps taken by the Government for development of Toy Industry

1. Directorate General of Foreign Trade (DGFT)  vide Notification dated 02.12.2019 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.
2. Basic  Custom  Duty  (BCD)  on  Toys-HS  Code-9503  has  been  increased from 20% to  60% in February 2020, subsequently increased to 70% in March 2023.
3. The Government 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.  This  QCO  is applicable to both domestic manufacturers as well as foreign manufacturers who intend to export their toys to India.
4. QCO on Toys was amended on 11.12.2020 to exempt goods and articles manufactured and sold by artisans registered with Development Commissioner,  Ministry  of  Textiles  and  also  by  registered  proprietor  and authorized users of a product registered as Geographical Indication by the Office of Controller General of Patents, Designs and Trademarks (CGPDTM), Govt. of India (GoI).
5. BIS made special provisions on 17.12.2020 to grant license to micro scale units manufacturing toys without testing facility for one year and not to insist on establishing in-house facility. Subsequently, on industry representation, the relaxation has been extended up to a period of 3 years.
6. BIS has granted 1318 licenses to domestic toy manufacturers and 38 licenses to foreign manufacturers for safety of toys as per IS 9873/ IS15644 as in July 2023.
7. The Government of India developed a comprehensive 'National Action Plan' for  Toys  in  2020  to  boost  local  manufacturing  and  incentivize  toy  and handicraft  manufacturers  to  make  India  the  next  global  hub  of  Toys.  The 'National  Action  Plan'  is  implemented  in  collaboration  with  14  Central Ministries/Departments, including Education, Textiles, Railways, Science And Technology,  and  Information  &  Broadcasting.  It  contains  21 action points across four broad themes - Promoting      Trade and Investment, Design and manufacturing  of  Toys  in  India,  Promoting  Indigenous  Toys,  and  Toys  as learning resources.
8. (d): Details of applications received from the States and Projects assisted under Prime Minister's  Employment  Generation  Programme  (PMEGP),  which  are  Micro  units related to Toy making activities during the last three years and current year is given below:

| Year            |   Received applications |   No. of Projects assisted |   Margin Money Disbursed (Rs. In lakh) |
|-----------------|-------------------------|----------------------------|----------------------------------------|
| 2020- till date |                     696 |                        134 |                                 385.38 |

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