Top global firms approaching Indian toy makers for sourcing goods: Official

Paris: Top global retailers from the US and Europe have shown keen interest in sourcing goods from Indian toy manufacturers and hand-hold them to meet their compliance requirements, a government official said.

The official said these retail giants are looking to procure toys from India at a good scale.

The Department for Promotion of Industry and Internal Trade (DPIIT), which is taking a series of steps to promote domestic manufacturing of toys, is also helping the Indian manufacturers tie up with the global players to meet their compliance provisions and increase exports from India.

When asked about the issue, Manu Gupta, promotor of Playgro Toys India and Chairman of Toy Association of India, said a US-based retailer has approached the industry to procure toys in three main categories including ride-on and outdoor toys  and mechanical and electrical toys - worth USD 400 million.

He said DPIIT officials are helping the industry engage with these world players and get orders.

These firms buy goods from companies which meet their certain product and social compliances.

“To meet the social compliances, they are ready to do hand-holding, upskilling and reskilling of the existing workforce of Indian toy makers to improve their efficiencies. It would also help us in meeting standards of global companies,” Gupta said.

He added that so far 82 Indian companies have given their expression of interest to become part of this exercise.

"An Italian firm has also approached us to source from India," he said.

Gupta also said the sector is facing certain issues pertaining to demand slowdown in global markets and promotion of Indian brands.

“The government can help us in promoting brands as it is a long process to establish a name,” he said.

Initiative of DPIIT and the finance ministry, like releasing quality control orders and increasing import duty on toys have already helped the sector significantly cut imports of sub standard toys from countries like China and boost exports to the world.

Besides toys, the department is working on a number of quality control orders to cut import of low quality products into the country.

The country's toy exports touched Rs 1,017 crore during April-December 2022-23. In 2021-22, the exports stood at Rs 2,601 crore. During April-December 2013-14, the shipments were at Rs 167 crore.

The overall import of toys in India reduced by 70 per cent to Rs 870 crore in 2021-22.

In February 2020, import duty on toys was raised from 20 per cent to 60 per cent and now this year to 70 per cent, with an aim to discourage imports.

The government is also considering rolling out a fiscal incentive scheme -- PLI (production linked incentive) for toys.

In 2020, the government issued a Toys (Quality Control) Order. As per the order, toys have to conform to the requirements of relevant Indian standards and bear the standard mark under a licence. It is applicable to both domestic as well as foreign manufacturers who intend to export their toys to India.

The QCO has been issued to ensure that the consumers who are children only below the age of 14 years are not exposed to sub-standard goods/ goods containing toxic material/toys containing toxic material.

Over 41,000 sub-standard toys have been seized by enforcement agencies since the implementation of mandatory quality certification, with effect from January 2021, the government said last month.