Toys Manufacturing

• Scheme For Granting Recognition & Registration To In-House R&D Units
• Remission Of Duties & Taxes On Exported Products (RoDTEP)
• Duty Drawback Scheme
• Export Promotion Capital Goods (EPCG) Scheme
• Custom Bonded Warehouse Scheme
• Increase in BCD for Electronic Toys (under HSN 9503) from 5% to 15% to encourage domestic manufacturing.

• Capital subsidy
• Stamp duty exemption
• Interest subsidy
• Tax reimbursement
• Electrical duty exemption  

Under the Scheme of Funds for Re-generation of Traditional Industries (SFURTI) of the Ministry of Micro, Small & Medium Enterprises, assistance is provided for creation of common facilities centre with latest machines, design-centres, raw material bank, skill development etc. As of Dec’ 2021, 14 toy clusters across the country have been approved under the Scheme benefitting 8839 artisans with an outlay of INR 41.60 Cr ($ 5.4 mn) .

Ministry of Textiles is also providing need based support to Toy Clusters in the area of technology, marketing, soft and hard interventions and infrastructural support for sustainable development of handicraft artisan has identified 13 toy clusters across the country for the overall development of cluster, artisans of handmade toys.

In 2021, India's first toy cluster, in Koppal, Karnataka was developed by Aequs Infra. The cluster provides state of the art industrial infrastructure with power, water, internal roads, and waste disposal facilities and common facilities like customs, security, and a Centre of Excellence.

The cluster provides a built to suit, self-sustained ecosystem spread over 400 acres of land, including an SEZ to serve export markets and domestic tariff area (DTA) for the domestic market. It has the potential to create 40,000 jobs in five years and attract over INR 5,000 crore ($ 662.8) in investments. Additionally, a 100-acre facility is being developed in the state of Uttar Pradesh.

To instill standardization in production and import of toys, a Toy Quality Control Order was issued on 25 February 2020 under the BIS act to ensure toys manufactured or imported into the country were in-line with global quality standards. Recently, an amendment to the QCO exempted handicraft artisans and MSMEs from complying with QCO norms for a period of one year to boost the domestic manufacturing ecosystem in India.