Atmanirbhar toy industry: Modi hails fall in imports to cite self-reliance

Exports up 31% from $417.32 million in 2018-19 to $545.97 million in 2021-22

Prime Minister Narendra Modi’s Independence Day speech on Monday cited India’s toy industry when he called for reducing imports and promoting an Atmanirbhar Bharat (self-reliant India).

His comments come at a time when the country’s toy imports are down 39 per cent from $645.63 million in 2018-19 to $392.92 million in 2021-22. Exports increased 31 per cent from $417.32 million in 2018-19 to $545.97 million in 2021-22. “Even five to seven-year-old children say that they do not want to play with foreign-made toys. I salute them. This shows the spirit of Atmanirbhar Bharat within them,” Modi said.

A majority of India’s toy imports were China-made before the coronavirus pandemic: the number reduced 45 per cent from $451.71 million in 2018-29 to $246.74 million in 2021-22. According to data from India’s Commerce and Industry Ministry, Chinese products comprised 71 per cent of the overall imported toys in 2020-21. The figure came down to 62 per cent during 2021-22.

Industry experts said toy imports have decreased due to the rise in basic customs duties, from 20 to 60 per cent in February 20202. India last year banned the sale of toys not certified by the Bureau of Indian Standards (BIS). This meant that all toys sold in India had to be certified by the bureau after mandatory product testing, including for units abroad.

“No company from outside India has taken BIS certification so far. This has reduced our imports. As far as micro small and medium entrepreneurs are concerned, they are having dedicated research and development centers at their manufacturing units now. Moreover, the share of India’s exports in the international market too increased,” said Ajay Aggarwal, president of the Toy Association of India (TAI).

According to TAI, out of 6,000-odd toy manufacturing units in the country, around 850 have got BIS license. “A positive that we are seeing is that the majority of importers are now becoming manufacturers, setting up their own units. Several hubs and clusters are coming up across the country. We are also expecting a production-linked incentive on toy manufacturing soon, as well as government support on rate of interest. At current pace, India is going to be the second largest exporter of toys within five years,” said Pawan Gupta, owner of R P Associates, a distributor, importer and exporter based out of Delhi.

The Ministry of Micro, Small & Medium Enterprises (MSME) has approved 19 toy clusters across the country for developing the sector: these include nine in Madhya Pradesh, three in Rajasthan, two in Uttar Pradesh, two in Karnataka, and one each in Andhra Pradesh, Maharashtra and Tamil Nadu.