Why global retailers are flocking to Indian toy manufacturers

DPIIT officials assist the industry in engaging with these global actors and acquiring orders. These businesses purchase goods from suppliers that satisfy their product and social requirements.

flocking to Indian

Top global retailers from the United States and Europe have expressed strong interest in sourcing products from Indian toy manufacturers and assisting them in meeting their compliance requirements, according to a government official.

The official stated that these retail titans are interested in purchasing toys from India in large quantities. The Department for Promotion of Industry and Internal Trade (DPIIT), which is taking a series of steps to promote the domestic manufacturing of toys, is also assisting Indian manufacturers in establishing partnerships with global players in order to satisfy their compliance requirements and increase India’s exports.

When asked about the matter, Manu Gupta, promoter of Playgro Toys India and chairman of the Toy Association of India, stated that a US-based retailer has approached the industry with a USD 400 million purchase order for toys in three major categories, including ride-on and outdoor toys, mechanical and electrical toys.

According to him, DPIIT officials assist the industry engage with these global players and obtain orders. These businesses purchase goods from suppliers that satisfy their product and social requirements.

To meet social compliances, they are willing to provide hand-holding, upskilling, and reskilling of the existing personnel of Indian toy manufacturers in order to increase their productivity. Gupta stated that it would also assist us in achieving the standards of global corporations.

He added that 82 Indian companies have already expressed interest in participating in this exercise.

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

In addition, Gupta stated that the sector faces challenges related to a decline in demand on international markets and the promotion of Indian brands.

As establishing a name is a lengthy process, the government can aid us in brand promotion, he stated. DPIIT and the finance ministry’s initiatives, such as releasing quality control directives and increasing import duties on toys, have already helped the sector reduce imports of substandard toys from countries such as China and increase exports worldwide.

In addition to toys, the department is working on a number of quality control directives to reduce the importation of low-quality goods. During April to December 2022-23, the nation’s toy exports reached Rs 1,017 crore. In 2021-22, exports totaled 2,601 crore rupees. Between April and December of 2013-14, shipments totaled Rs 167 crore.

In 2021-22, the total imports of toys into India decreased by 70% to Rs 870 crore. To discourage imports, the import duty on toys was increased from 20% to 60% and now to 70% in February 2020 and this year, respectively. The government is also contemplating the implementation of a fiscal incentive programme — PLI (production-linked incentive) — for toys.

The government issued a Toys (Quality Control) Order in the year 2020. Toys must meet the requirements of applicable Indian standards and bear the standard mark under licence, as per the order. It applies to both domestic and international toy manufacturers who intend to export to India.

The QCO has been issued to ensure that consumers who are minors younger than 14 years of age are not exposed to substandard or toxic goods or toys.

Since the implementation of mandatory quality certification in January 2021, more than 41,000 substandard toys have been seized by enforcement agencies, according to a government announcement last month.