The document discusses the international and Indian toy industries. Some key points: - The global toy market was worth $96.6 billion in 2008 and is growing, led by the US and Europe. Interactive and intelligent toys are becoming more popular. - India's toy industry is valued at Rs. 2500 crore and growing 15% annually. It employs over 3 million workers, mostly women. Production meets only 30% of domestic demand. - Opportunities for India include its large domestic market, low costs, and potential to partner with multinationals. Challenges include lack of infrastructure, raw materials, technology, skills, and R&D. - Recommendations include developing toy

2. OVERVIEW

3.  International Toy Industry have a substantial impact on global
economy.
 The global toys and games market generated total revenues
to the tune of $ 96.6 billion in 2008, growing at a Compound
Annual Growth Rate (CAGR) of 4.1% for the period spanning
2004 – 2008. (By the study initiated by DIPP).
 US and Europe collectively account for over 70% of the world
toys and games market. (Estimated by Global Industry
Analysts Inc.).
 The growth of entire toys market depend upon the sectors,
which provides high degree of innovation and superior
technological features.
International Toy Industry

4.  Use of toys for educational purposes increasing.
 Significant development in the growth and
popularity of interactive and intelligent toys.
 Today child is more interested in playing with
trendier and smarter toys and games.
 Toys and games have no age limit, as they carry
an element of excitement and fun.
ChangingInterests

5.  Traditionally a Labour Intensive Industry, providing employment to over 3
million workers of which women constitute about 70 %.
 Use of Multiple Technologies and varied Raw Materials.
 Predominantly in Micro and Small Sectors.
 There are 1500 units in the organised sector and many more in unorganised
sector.
 Indian Toy Industry manufactures Toys worth Rs. 2500 Cr (approx) & the
Industry is growing at the rate of 15 % per year.
 Annual growth rate in demand is 25%.
 Indian manufacturers fulfil about 30% of Domestic Toy Demand.
Indian Toy Industry

6.  Current Population of India is (1.22 billion)
 20% population is under the age of 12 years;
 Huge demand of Toys under literacy program such as
Sarva Shiksha Abhiyan run by Government.
 Free & Compulsory Education.
 Growing middle class with higher disposable income.
 Emphasis on play way methods for education and learning
being practiced widely.
 Increased consumer awareness about the developmental
toys.
 MNCs have Social Responsibility Budget towards CHILD
DEVELOPMENT.

8.  Large and Growing Domestic Market.
 Increase in demand due to rise in the disposable income of
domestic consumer.
 Emergence of India on the Global Toy Scene.
 Huge pool of low cost Labor.
 Business acumen of the Entrepreneurs.
 Capacity to compete under adverse conditions.

9.  Many toy manufacturing units are tiny in size hence low
volume of production.
 Poor -Availability of quality raw material for different toy
categories.
 Poor process capability because of inadequate technical
capabilities and outdated technology,
 Use of general-purpose machines for specialized jobs
due to high cost of special purpose Machines/ Very high
cost of foreign technologies.
 Low availability of trained management and labour
component (skilled and semi skilled)

10.  Higher production cost due to lack of economies of
scale.
 Lack of innovative and new ideas.
 Low availability of Toy Specific Designers.
 Minimal expenditure on branding and advertising.
 Lack of research and development facilities.
 Lack of Common Facility Centres.

11.  Market Scope: Estimated Indian Toy manufacturing is
worth around Rs. 2500 cr. & growing at the rate of 15%
per annum.
 Growing domestic market due to increasing in buying
capacity.
 Liberalized economy, “Make or Buy” decisions easier.
 Low cost manufacturing base enabling strategic
alliances/Potential cooperation with customers and
multinationals.
 Multiple usage of toys though different channels such
as promotion, gifting, educational. etc.

12.  Advantage of Information Technology and Communication.
 Spread of Play way education through toys
 Huge demand of toys in teaching process under
government schemes like ‘Sarva Shiksha Abhiyaan’.
 China’s Internal Issues: China is unable to fulfil the global
toy demand due to the problem of high labour cost,
shifting to high end products and fluctuating of currency..
 World especially western countries search for alternative
manufacturing hub in South East Asia.

14.  About 70 % demand of toys in Indian market is met
by imports from China;
 Most of the imported Toys are not according to the
needs of Indian children;
 A large amount of foreign exchange is being spent
on Toy imports.

15.  Taxes (VAT): VAT on Electronic toys is high as compared to
other toy products.
 Importing raw materials & capital goods is expensive due to
high import duty .
 Availability of all kinds of quality raw material at reasonable
cost is area of concern.
 Technology related issues: No design/training / technology
development institute/centre dedicated to Toys.
 Availability and quality of basic infrastructure such as power,
water, road, rail, etc in India is poor.
 Depreciation of Indian Currency against International
Currencies.

16. Governing Body and various Committees of the
Manufacturing Wing of TAI considered the matter very
seriously and have drawn and recommended a two way
strategy with holistic development approach.
a. Long Term Strategy
b. Short Term Strategy

17. 1. Adequate space &
Infrastructure
2. Raw Material
3. Technology
4. Training
5. Pedagogy
6. Design
development
7. Research
8.Market
development
9. Taxes & duties
10. Export issues
11. Testing
12. Packaging
Recommendations
for Sectoral
Development

18. Make a provision to shift the units which are in non-
confirming areas to a closest proposed ‘Toy Parks’
where they can have enough space according to their
needs and proper infrastructure. Therefore,
• A Toy Park should comprise proper infrastructure
with Common Facility Centre in Cluster Mode,
power back-up, E-commerce facility, transport
facility and facilities required for auxiliary industry
with the involvement of concerned
Ministries/Departments.

19. The quality raw materials such as fabric, wood,
hardboard, non-toxic paints and inks are not available
locally. Therefore,
Easy and common availability of standardized
raw material.
Create a ‘Common Storage and distribution Hub’
for imported raw material through agencies like
NSIC.
Registration should be mandatory for all toy
manufacturers.
Registered Manufacturers should be allowed to
import free of excise duty against the ‘Actual
User Certificate’.

20.  Create awareness and promote technical capabilities on
latest technology and provide its’ knowledge to small and
medium units.
 Strengthen the capability of manufacturers with the use of
foreign technology and purpose specific machines for
special tasks.
 Use of high cost big machines like injection molding, blow
molding, CNC, box making machines, etc. should be
installed in common locations/Toy Parks under the Cluster
Scheme, to create availability of these machines for all.
 Tooling facilities need to be made for all toy categories.

21. Toy category wise training of labor on different skills
Managerial and supervisory level training to manage the
quality production and operation.
Diploma level courses in gaining knowledge of
• raw material,
• alternative raw materials for different toy categories
• usage of that material in making of different toy
• categories to enhance the production capacity and
quality.

22. A regular interaction of the industry with child specialists, teachers,
parents and children to know the child’s need through direct and in-direct
source of communications.
Intervention of different Class Room Projects of different age group to
collect the feedback on existing products, their usage and requirement
under the Design Clinic Scheme.
A ‘Concept Bank’ should be formulated with involvement of different
subject experts and professional experts e.g. phsycologists, engineers,
scientists so they can work on new concepts as per the expressed
requirements and curriculum with visionary approach for the future
needs.
A mechanism should be developed to do the sample testing of new
concepts developed and facility of copyright and its benefits under the
proposed Toy Institute.

23.  Setting up of toy Design and Development Institute be
expedited.
A few foreign designers can be appointed in the institute.
Through the institute a ‘Design Bank’ should be created and
final design can be given as royalty to the manufacturers.
An Indian character should be developed and publicized and
can be used by different manufacturers by paying royalty.
Until the Institute will be operational, the work should be
started from hired places specially in Delhi, Noida, and
Mumbai.

24.  The manufacturers are taking assistance of private
international testing labs to test their products.
 A provision of handy testing kit should be made
available, so they can test their products at the
initial stage before to go for the final testing of the
product to obtain testing report certificate.
MSME Testing Centre at Okhla should be
upgraded to International standards. A Joint
Committee should be formed to make maximum
use of the lab according to the need of
Exporters.

25. Generate Research and Development facilities to address
the core issues and to resolve the problems related to raw
material, machinery or design. Initially, help of agencies like
CSIR, National Innovation Council, etc. can be sought in :
Making of Non-phthalate plasticizers
Non-toxic paints, though few are available in the market
but there applications are not applicable on different
category of toys due to odd reasons.
Creation of Hot Dot Ink
Tremendous research and intervention is required in
terms of electronic toys.
Intervention in scientific and educational toys.
To create new grade of plastic having high density and low
weight with all other qualities remaining same.

26. There should not be any bifurcation between
Electronic or Non-electronic Toys.
Reduce the VAT on Electronic toys at par with
other Toys and rename all kinds of Toys as “Toys”.
Toy comes under Bangkok Agreement attracting
concessional rate of basic import duty. We
propose toy components and raw materials be
allowed to import under the same scheme by
producing Actual User Certificate.

27.  Duty free import of capital goods, raw material and components are
offered only to fully Export Oriented Units (EOUs). It should be
common for all manufacturing units against Actual User Certificate.
 It’s difficult to set – up input-output norms for toy industry where
different kind of raw materials are used in single product. Therefore,
duty draw backs should be increased.
 To enhance export a comprehensive program for the next 5 years be
framed for manufacturing need base toys for focus countries, under
MAI scheme of the ministry of Commerce.
 International Toy Show be organized & promoted through extensive
publicity and our Foreign Missions.

28. Most of the industry comprises of tiny and micro
enterprises and do not have enough budget to
invest on marketing. It is requested to the
government to promote Indian Toys at national and
international level though:
Adopting various advertising modes to do branding
and image development of the Indian toy industry;
Promote regional toy shows;
Promote Indian toy characters.
Promote ‘Made in India’ Tag.
Dedicated website for Indian Toys.

29. The Toy Industry requires knowing the
modern techniques of packaging and
training on it. Such as flexible and rigid
packaging, bulk packaging, packaging
machinery, etc. Therefore, National
Packaging Institute can be approached
to help the industry in this regard.

30. Holistic development approach
Industry
TAI
Government
Support
CSIR
(Scientific
Research)
Toy Institute
(Innovation)

31. LONG TERMSTRATEGY SHORT TERMSTRATEGY
 Creation of Toy Zones in
Mumbai & NCR on the
basis of Cluster Scheme.
 Restarting of second
phase of National Program
for the Development of
Toy Industry (NPDTI).
 Setting – up the proposed
Toy Design &
Development Institute at
Greater Noida.
 Design Scheme to be
modified according to the
needs of the Toy industry.
 The institute can be started
in some hired space or in
some Govt. Institute.
 A few foreign designers
can be appointed in the
areas of our strength in
which work can be started
such as:
 a. Designing
 b. Pedagogy
 c. Training

32. Enhanced Production in India will:
 Fulfill development needs of our children.
 Will Save a lot of Foreign Exchange.
 Generate employment.
An additional push to the Industry will see
tremendous growth and show buoyancy in
Export

33. A Special Status be granted to the Toy Industry
by creating a Statutory Body
“THE TOY BOARD”

34.  A Task force or a Committee under the chairmanship of
one of the secretary/ Joint secretary should be formed.
 Others members of the committee: Representatives of
the Ministries/ Department of Commerce, MSME, DIPP,
DGFT, NMCC, NSIC, CSIR, NATIONAL PACKAGING
INSTITUTES.
 Design Institutes : NID, NIFT.
 INDUSTRY: Representative from The Toy Association
Of India (TAITAMA).
 The committee may plan a phased performance based
program for the next five years.

35. The Industry shall work
wholeheartedly to
achieve the above
objectives.

36. From The Toy Association of India,
E: association.toy@gmail.com,
W: www.tai-India.org