The government has increased the import duty on toys and its components to 70 percent with a view to cut inbound shipments of these products and boost domestic manufacturing activities.
Similarly, import duty on bicycles has also been hiked to 35 percent from 30 percent, according to a Union Budget document.
Import duty hike on toys and parts of toys excludes parts of electronic toys.
Earlier, basic customs duty on toys was increased from 20 percent to 60 percent in February 2020 to promote local manufacturing.
Toys worth Rs 2,960 crore were imported into India earlier but steps by the government helped in reducing the imports to Rs 870 crore in 2021-22.
On the other hand, the exports of toys have increased by 61 percent from Rs 1,612 crore to Rs 2,601 crore in 2021-22.
Earlier, the government issued Toys (Quality Control) Order, 2020 in February 2020.
As per the order, toys must conform to the requirements of relevant Indian standards and bear the standard mark under a license. It is applicable to both domestic as well as foreign manufacturers who intend to export their toys to India.
Manu Gupta, Promotor of Playgro Toys India, said a National Toy Policy and Production Linked Incentive scheme would help further promote the sector's growth by pushing the scale.