The newly-formed United Toys Association of Mumbai (UTAM) has, in the wake of a proposed hike of 200% in import duty on toys, demanded that the government treat toys as an essential commodity having similar relevance for a child as an educational book.
Toy retailers in the city have come together to form UTAM to appeal to the government to revoke the proposed hike in import duty on toys to 60% from 20%. The association said the proposed hike of 200% in import duty on toys has left it with no option but to voice dissent.
“India imports 85% toys in the industry annually, of which 75% are from China. This step of proposing a 200% hike in import duty on toys has been a shock,” said Abdullah Sharif, vice-president, UTAM. In the past two years, import duty on toys has been increased by around 500%, he said. “This step will make toys unaffordable, decreasing sales tremendously and adversely affecting the livelihood of millions of people employed in the toy industry across India.”
UTAM said the Indian toy industry does not have a viable ecosystem to support toy production on a large scale in the country. It said domestic toy manufacturers contribute around 15% of the toys in the Indian market, and by curbing the import of toys, the toy business in India will suffer a major setback.
“Toys shops all over India shall not be able to sustain the blow of such a hike. This step will adversely affect more than one lakh retailers across India. A high duty will make toys unaffordable for the masses, resulting in closure of the businesses and a spur in of unemployment,” the association said.
UTAM also requested the government to treat toys as an essential commodity, having similar relevance for a child as an education book. STEM toys, flying toys, role-play toys, coding toys and model kits are now available over the world, and are considered to be educational tools teaching children the principles of science and enhancing their cognitive skills. Different kinds of role-play toys create aspirations among children to be pilots, scientists, doctors, engineers, astronauts and politicians, UTAM said in a statement.