Quality standards key to manufacturing push; toy sector turned net exporter after QCOs: Consumer Affairs Secretary Nidhi

Senior officials and industry experts have highlighted the toy sector's transformation into a net exporter as a model case study for how mandatory quality st...

What Happened

Senior officials and industry experts have highlighted the toy sector's transformation into a net exporter as a model case study for how mandatory quality standards can simultaneously reduce import dependence and boost domestic manufacturing competitiveness.
The Bureau of Indian Standards (BIS) introduced mandatory Quality Control Orders (QCOs) for toys, requiring all toys sold in India — domestic or imported — to conform to seven specific Indian standards and carry the ISI mark under a valid BIS licence.
Following the imposition of mandatory BIS certification, toy imports fell sharply while domestic manufacturing capacity expanded, reversing India's historical position as a large net importer of toys (predominantly from China).
Officials cited the toy sector success as a scalable model for other manufacturing sectors targeted under the Make in India and Production Linked Incentive (PLI) scheme framework.

Static Topic Bridges

Bureau of Indian Standards (BIS) and Quality Control Orders

The Bureau of Indian Standards (BIS) is the national standards body of India, established under the Bureau of Indian Standards Act, 2016 (which replaced the BIS Act, 1986). BIS operates under the Ministry of Consumer Affairs, Food & Public Distribution and is responsible for developing Indian Standards (IS), operating product certification schemes (ISI mark), and managing hallmarking for gold and silver.

The ISI Mark (Indian Standard Institution, now Indian Standards) is the most recognised product certification mark in India, mandatory for specified goods under the BIS (Conformity Assessment) Regulations, 2018.
Quality Control Orders (QCOs) are statutory orders issued under the Bureau of Indian Standards Act, 2016, by the relevant administrative ministry, making BIS certification mandatory for specific products — covering both domestic manufacturers and importers.
As of 2026, there are 1,640 BIS-certified toy manufacturers in India: 1,165 for non-electronic toys and 475 for electric toys.
Indian toy standards are aligned with international norms set by ISO (International Organization for Standardization) and IEC (International Electrotechnical Commission), covering physical, chemical, and electrical safety.

Connection to this news: The mandatory toy QCO demonstrated that rigorous standards, when uniformly applied to domestic and imported goods, level the playing field for domestic manufacturers — creating a template for quality-led import substitution.

Make in India and Quality-Led Import Substitution

Make in India, launched in September 2014, aims to increase the manufacturing sector's contribution to GDP from approximately 15% to 25%, generate employment, and position India as a global manufacturing hub. A key instrument of this strategy has been targeted import substitution through demand-side protection (tariffs, QCOs) combined with supply-side incentives (PLI schemes, infrastructure).

The toy QCO was complemented by an increase in basic customs duty on toys from 20% to 60% in the Union Budget 2020-21 — a combined tariff and standards approach to restructure the sector.
India's toy exports rose by 239% between FY 2015 and FY 2023; toy imports fell from approximately USD 304 million in FY 2019 to approximately USD 65 million by FY 2024 (~79% decline).
India crossed the net exporter threshold as exports surpassed imports — a reversal from a position where China accounted for 87% of India's toy imports in FY 2019 (down to approximately 64% by FY 2024).
The Indian toy market is projected to reach USD 3 billion by 2028, growing at a CAGR of approximately 12% between 2022–28.

Connection to this news: The toy sector is now being cited as proof of concept that QCOs, when sector-specifically designed and rigorously enforced, can drive structural shifts in manufacturing trade balances within 3–5 years.

Production Linked Incentive (PLI) Scheme and Manufacturing Policy Architecture

The Production Linked Incentive (PLI) scheme, introduced through the Atmanirbhar Bharat framework from 2020 onwards, provides financial incentives (typically 4–6% of incremental sales over a base year) to domestic manufacturers in specified sectors. The toy sector — along with textiles, electronics, pharmaceuticals, food processing, and 10 other sectors — has received targeted support under India's broader manufacturing policy stack.

India's manufacturing sector contributes approximately 17–18% of GDP (as of recent data) against a target of 25% by 2025 (revised forward).
The PLI scheme for toys complements the QCO regime: PLI builds domestic supply capacity while QCOs create demand-side protection by raising the compliance bar for imports.
The "Vocal for Local" campaign reinforced consumer preference for domestically produced goods, providing demand-side momentum alongside the supply-side push.
BIS standards are stated to be better calibrated than some global norms for certain product categories, providing Indian manufacturers with quality credibility in export markets — a positive externality from the mandatory standards push.

Connection to this news: The manufacturing policy success in toys illustrates an integrated approach: tariff protection (customs duty hike) + mandatory standards (QCO) + supply-side incentives (PLI) + demand promotion (Vocal for Local) — each element reinforcing the others.

Key Facts & Data

BIS established under: Bureau of Indian Standards Act, 2016
BIS operates under: Ministry of Consumer Affairs, Food & Public Distribution
Toy standards applied: 7 Indian Standards (physical, chemical, electrical safety) aligned with ISO/IEC
BIS-certified toy manufacturers (2026): 1,640 (1,165 non-electronic + 475 electric)
Toy import decline: USD 304 million (FY 2019) → USD ~65 million (FY 2024) (~79% drop)
Toy export growth: 239% increase between FY 2015 and FY 2023
China's share of India's toy imports: 87% (FY 2019) → ~64% (FY 2024)
Customs duty on toys: raised from 20% → 60% in Union Budget 2020-21
Indian toy market projection: USD 3 billion by 2028 (CAGR ~12%, 2022–28)
India's share of global toy exports: approximately 0.3% (room for significant scale-up)
Policy instruments: QCO (BIS Act 2016) + Customs Duty hike (Finance Act 2020) + PLI scheme