Govt steps help boost toy exports, manufacturing; more work needed: DPIIT Secy
As the scheme is yet to be cleared by the Union Cabinet, the interim Budget has made a token provision of Rs 1 lakh towards the scheme for 2024-25.
Government measures such as mandatory quality control orders and increasing customs duty have helped boost exports of toys from India, but there is a need to do much more for the sector, a top official said on Wednesday.
Secretary in the Department for Promotion of Industry and Internal Trade (DPIIT) Rajesh Kumar Singh also indicated that they are diligently pursuing the proposal of extending fiscal incentives under the Production Linked Incentive (PLI) scheme for the sector.
He said that the industry is wondering about one proposed major policy intervention and "let me assure you that we are still pursuing that".
In the interim Budget in February, the Commerce and Industry Ministry recommended an outlay of Rs 3,489 crore for the PLI scheme for toys to boost domestic manufacturing in the sector.
As the scheme is yet to be cleared by the Union Cabinet, the interim Budget has made a token provision of Rs 1 lakh towards the scheme for 2024-25.
The scheme aims to attract investments in key sectors and cutting-edge technology; ensure efficiency, bring economies of size and scale in the manufacturing sector and make Indian companies and manufacturers globally competitive.
Singh said the country's toy exports jumped to $325.72 million in 2022-23 from $96.17 million in 2014-15 as the government provides all-around support for creating a conducive manufacturing ecosystem for the toy industry.
Imports of toys dipped by 52% from $332.55 million in 2014-15 to $158.7 million in 2022-23.
"The national action plan for toys and other initiatives has had a good impact, but we need to do much more," Singh said, adding that the sector holds huge exports and job potential.
To make India a global hub for toy manufacturing, the government has undertaken a series of initiatives, including the formulation of a comprehensive National Action Plan for Toys (NAPT) to promote the designing of toys, using toys as a learning resource, monitoring quality of toys, and promoting indigenous toy clusters.
The secretary was speaking at a toy workshop here.
In order to enable further growth, increased market access and development of new-age marketing skills, DPIIT conducted a workshop with Flipkart and the Indian Toy Industry. Flipkart, Walmart and the Toy Association of India participated in the event.
Joint Secretary in the DPIIT Sanjiv said that the workshop was aimed at enhancing India's position and capabilities in the global toy supply chain.
This will help the toy manufacturers understand the nuances of online selling which shall in turn help in the growth of sales and market access, he said.
The issues figured out in the workshop included ways to increase sourcing through online platforms, onboarding of manufacturers on the Flipkart platform and upskilling.
It was also aimed at supporting online selling, scaling domestic consumption and upskilling or reskilling the workforce.
Last year, informed toy makers about their requirements and expected quality standards as it is directly engaging with domestic toymakers for sourcing.
The online platforms provide greater access to a much wider customer base across India, expanding their market reach significantly. E-commerce eliminates the need for physical stores, reducing operational costs.
It also provides valuable brand exposure to a large audience.
Additionally, ecommerce platforms offer data on consumer buying habits and preferences, allowing manufacturers to develop products that cater to market demands.
India raised import duties on toys beginning in February 2020. The basic customs duty was increased from 20% to 60% and then to 70% in July 2021.
"The Indian toy industry has expanded its global presence to more than 100 countries, including the US, the UK, Germany, the Netherlands, Denmark and even China. The next step for the toy industry is to reach the international consumers through the effective use of online mediums," Sanjiv said.
Edited by Megha Reddy