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DPIIT Workshop for Enhancing India’s Toy Sector
Context:
The Department for Promotion of Industry and Internal Trade (DPIIT) is set to conduct a knowledge-sharing workshop with Flipkart and the Indian Toy Industry.
More on news:
- This initiative aims to support online selling, boost domestic consumption, and upskill/reskill the workforce.
- The goal is to enhance India’s position and capabilities in the global toy supply chain, helping manufacturers understand the nuances of online selling to increase sales and market access.
Background:
- The sector is dominated by small & medium sized manufacturers.
- During his “Mann ki Baat” address in August 2020, Prime Minister expressed a vision to establish India as a global toy manufacturing hub.
- To realise this vision, the government formulated a comprehensive National Action Plan for Toys (NAPT).
- This plan promotes toy designing, using toys as learning resources, monitoring toy quality, and promoting indigenous toy clusters.
- The Government of India is planning to provide comprehensive support to promote ‘Vocal for Local’ in toys through NAPT.
- Impact: These initiatives have led to significant growth in the Indian toy industry.
- In FY 2022-23, compared to FY 2014-15, toy imports declined by 52%, exports rose by 239%,
- The overall quality of toys in the domestic market improved.
- Labor-intensive toy categories like dolls, soft toys and board games offer significant manufacturing potential in India due to inherent cost competitiveness and growing demand.
- Gujarat is fast becoming a toy manufacturing hub.
Government Initiatives:
- Increased Basic Customs Duty (BCD):
- BCD on toys increased from 20% to 60% in February 2020, and subsequently to 70% in March 2023.
- Import Regulation by DGFT:
- Directorate General of Foreign Trade (DGFT) mandated sample testing of each import consignment to curb the import of sub-standard toys.
- Quality Control Order (QCO):
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- Issued in 2020, effective from January 1, 2021, to ensure high standards.
- Special Provisions by BIS:
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- BIS notified special provisions on December 17, 2020, to grant licences to micro sale units manufacturing toys without testing facilities for one year, extended by three years.
- BIS granted over 1400 licences to domestic manufacturers and over 30 to foreign manufacturers for toys with BIS standard marks.
- Prior to the BIS regulation, India’s dependence on China for toys was 80%, which has now decreased.
- However, The Toy Association of India (TAI), believes that the BIS rules need to be further relaxed to support micro, small, and medium enterprises.
- Cluster-Based Approach:
- The Ministry of MSME supports 19 toy clusters under the SFURTI scheme.
- The Ministry of Textiles provides designing and tooling support to 26 toy clusters.
- Promotional Initiatives:
- Initiatives like The Indian Toy Fair 2021 and Toyotathon undertaken to promote indigenous toys and encourage innovation.
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bout The Toy Association of India (TAI):
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About DPIIT:
- Established in 1995, reconstituted in 2000 with the merger of the Department of Industrial Development.
- It aims to promote industrial development by facilitating investments in new technology, accelerating foreign direct investment, and supporting balanced industry and trade growth.
- Role and function:
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- Promotes and develops industries such as cables, light engineering products (sewing machines, typewriters, weighing machines, bicycles), light industries (polywood, stationery, matches, cigarettes), and light electrical engineering products.
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- Fosters growth in sectors including raw films, hardboard, paper, newsprint, tyres, tubes, salt, cement, ceramics, tiles, glass, leather goods, soaps, detergents, and footwear design & development.
- Schemes undertaken by DPIIT to promote manufacturing sector:
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- Make in India Initiative, Industrial Corridor Development Programme, Ease of Doing Business, National Single Window System, PM Gati Shakti National Master Plan, Special Assistance for Capital Investment, Production Linked Incentive Scheme, North East Industrial Development Schemes.