The government today banned imports of Chinese toys for six months. Although the notification by the Directorate General of Foreign Trade has not cited any reason, the Indian toy industry believes job losses in the sector prompted the government’s move.

The other issue of grave concern since 2006 is the toxicity of Chinese toys. It was found that lead used in some toys could cause grievous health problems in children.

“We are surprised that the government has taken this step. In most likelihood, it has been done to protect India’s labour engaged in this sector,” said Rajesh Arora, general secretary, Toys Association of India (TAI). “We are following toxicity standards and there is no reason why we should make any such recommendation,” Arora said.

“We are not aware of this development,” said Dinesh Rai, Secretary, Ministry for Small and Medium Enterprises said. The organised sector makes up $1 billion of the total $2.50-billion toy industry. The per capita expenditure on toys in India is just 50 cents, it’s $34 per capita in the US.

WHY?

Not known for sure. Possibly to protect domestic toymakers in hard times. Toxicity of the toys has been an issue since 2006.

HOW MUCH?

Estimates suggest 50% of imported toys in the $1.5 billion unorganised toy sector come illegally from China. The indigenous organised sector is worth $1 billion; toys are made in roughly 1,000 small-scale units, mostly in Mumbai and Delhi.