Govt. to launch INR 3500 Cr. PLI scheme for toys

The Production Linked Incentive (PLI) scheme is initiated to promote the domestic manufacturing of toys

December 5, 2022

The government is expected to incentivise toys made with imported parts

Many toy components such as electronic parts and fabric used in soft toys are not currently manufactured in India

An announcement on the scheme is likely to happen in the upcoming budget meeting for FY24

The PLI scheme for toys will be applicable to toys which are compliant with the norms set by the Bureau of Indian Standards (BIS)

The Indian government is developing an INR 3,500-crore Production Linked Incentive (PLI) scheme to promote the domestic manufacturing of toys that comply with Bureau of Indian Standards (BIS) norms,  according to media reports.

The government is expected to incentivise toys made with imported parts, as many toy components such as electronic parts and fabric used in soft toys are not currently manufactured in India. 

According to reports, government officials said that an announcement on the scheme is likely to happen in the upcoming budget meeting for FY24. Additionally, the Department for Promotion of Industry and Internal Trade (DPIIT) is also developing similar PLI schemes for bicycles and footwear.   

The idea is also to cut imports of unsafe toys from China and build domestic manufacturing capabilities. Data released by the commerce ministry also shows the value of toys imported by India fell from $371 million in FY19 to $110 million in FY22, a decline of over 70%.

Experts said that the figures for incentives and turnover could reach somewhere between INR 5-7 crore, as the majority of the sector comprises small and medium players. The government has recently issued around 1,000 licences for toys. 

India is the second largest producer of polyester and other fibres used for toys and has an 8% global share for plush toys. With PLI schemes and other supportive initiatives, toy-making in India will soon turn into a sizable economic driver.

Source: Economic Times

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