June 13, 2024
Toy exports surged from US$ 96.17 million in 2014-15 to US$ 325.72 million in 2022-23
Toy imports decreased by 52%, from US$ 332.55 million in 2014-15 to US$ 158.7 million in 2022-23
Initiatives include the National Action Plan for Toys and increased customs duties
Workshops aim to enhance the global competitiveness of Indian toy manufacturers
Government measures such as mandatory quality control orders and increased customs duties have significantly boosted India’s toy exports. However, according to Rajesh Kumar Singh, Secretary of the Department for Promotion of Industry and Internal Trade (DPIIT), more support is needed for the sector. Singh highlighted the ongoing efforts to extend fiscal incentives under the production-linked incentive (PLI) scheme for toys. The interim Budget in February recommended an INR 3,489 crore outlay for the PLI scheme to boost domestic manufacturing, with a token provision of INR 1 lakh for 2024-25 pending Union Cabinet approval.
India’s toy exports dramatically increased, rising to US$ 325.72 million in 2022-23 from US$ 96.17 million in 2014-15. Concurrently, toy imports have decreased by 52%, from US$ 332.55 million in 2014-15 to US$ 158.7 million in 2022-23. Singh emphasised the potential for further growth in exports and job creation, noting the impact of the National Action Plan for Toys (NAPT) and other initiatives.
The government has implemented various measures to position India as a global hub for toy manufacturing, including promoting toy design, using toys as learning resources, monitoring toy quality, and supporting indigenous toy clusters. Singh stressed the need for continued efforts to foster a conducive manufacturing ecosystem.
The DPIIT recently conducted a workshop with Flipkart and the Indian Toy Industry to enhance market access and develop new-age marketing skills. The workshop aimed to integrate toy manufacturers into the global toy supply chain, focusing on online selling, increasing sourcing by online platforms, and upskilling the workforce.
Flipkart and Walmart participated in the workshop, providing insights into their quality standards and requirements. E-commerce platforms like Flipkart offer toy manufacturers greater market reach, reduced operational costs, valuable brand exposure, and data on consumer buying habits. This information helps manufacturers develop products that meet market demands.
To further support the industry, India increased toy import duties from 20% to 60% in February 2020 and then to 70% in July 2021.
Source: Economic Times