New Delhi: beep. India’s ambition to become a global toy center encountered a problem – children’s scooters.
This matter concerns the category called non-motorized “Mobility Scooters” -The children, whether sitting or standing. Those equipped with lights are taxed to 18%, while those who have no lights attract only 12% tax on goods and services (GST).
Indian toys manufacturers say that the higher rate is arbitrary and contradicts the government to promote domestic toys production in global markets, two people who knew about matters said.
The matter deals with the Ministry of Trade, they said.
The complaint comes although the government aims to increase the exports of toys that are set for support after the conclusion of trade agreements with Great Britain, the US and the EU.
“There are 18% of GST on products that fall into the electronics category. However, there is no change in the functions or properties of the toy in the case of mobility.
“The basic functions of toys remain the same and only some additional functions are included. The four -wheeled car continues to attract 18% of GST, although it includes components such as batteries or sound systems that fall into higher GST categories, but it is added in the case of toys.”
Questions sent by the Ministry of Commerce and the GST secretariat remained unanswered at the time of the press.
Driven
Lights on mobility scooters are not controlled by batteries but are driven by movement via magnets-shaped function that barely stands £20 per unit, said a representative of the industry who wanted to remain unnamed.
Although these lights increase the attraction of the toy, the increased tax burden reflects the manufacturer from creating such versions.
The government is trying to find a feasible solution after consultations with stakeholders, which will then be recommended to the GST Council, one of the above two people said.
“The proposal is currently considered by the Ministry,” the other person said.
“This (anomaly) not only discourages the manufacturer from adding value, but also limits the available approach to the engaging, educational and interactive toys for Indian children. At a time when India is trying to become a global toy center, such policies risk suppressing creativity and competitiveness,” said Vivek Singhal, CEO, Bidso.
Indian toys gain global popularity and exports grow from £1 260.88 Crore ($ 151.9 million) in the years 2023–24 £1,430,82 crore ($ 172.4 million) in the years 2024–25, according to data on the Ministry of Commerce. Imports in the same period recorded a modest increase – of £537.52 crore ($ 64.7 million) £626.21 crore ($ 75.4 million).
Convert numbers to USD, exchange rate £83 per dollar was used.
Potential for expansion
While the exports of toys grew by 13.5% year-on-year in FY2023–24 to FY2024–25, industry data state that political support-for example, GST rationalization, export incentives and global trade agreements could help release a new phase of expansion.
It is assumed that the global toy market will reach $ 179.4 billion by 2032, according to the Punjab National Bank (PNB) report published in February 2025.
Minister of Commerce and Industry Piyush Goyal 4. “The scheme would focus on strengthening design skills, improving quality production, increasing packaging standards and facilitating brand building efforts,” Goyal said.
The Indian toy industry, once strongly dependent on imports, now produces exports to 153 countries.
According to the India EXIM Bank report, this sector remains very fragmented, with an unorganized segment dominated by about 90% of the market. While global players like Mattel and LEGO operate in India, the industry is largely driven by more than 4,000 units concentrated in clusters across NCR, Maharashtra, Karnataka, Tamil Nadu and other regions.
(Tagstotranslate) India toys toys
