Government Efforts Boost Toy Manufacturing and Exports; Further Steps Needed: DPIIT Secretary

The Secretary of the Department for Promotion of Industry and Internal Trade (DPIIT), Rajesh Kumar Singh, highlighted that government measures such as mandatory quality control orders and increased customs duties have significantly boosted toy exports from India. However, he noted that additional efforts are required to further develop the sector.

Singh mentioned that they are actively working on extending fiscal incentives under the production-linked incentive (PLI) scheme for the toy industry. The Commerce and Industry Ministry has proposed a budget of Rs 3,489 crore for this scheme to enhance domestic manufacturing, although the Union Cabinet has yet to approve it. The interim Budget has allocated a nominal Rs 100,000 for the scheme for the 2024-25 fiscal year.

The PLI scheme aims to attract investment in key sectors, ensure manufacturing efficiency, and make Indian companies globally competitive. Thanks to government support, India’s toy exports increased from $96.17 million in 2014-15 to $325.72 million in 2022-23, while imports decreased by 52% from $332.55 million to $158.7 million in the same period.

Singh emphasized that while the national action plan and other initiatives have positively impacted the toy industry, more work is needed to fully realize its export and employment potential. The government has launched various initiatives, including the National Action Plan for Toys (NAPT), to promote toy design, quality monitoring, and the development of indigenous toy clusters.

At a recent toy workshop, DPIIT collaborated with Flipkart, Walmart, and the Toy Association of India to enhance market access and develop new marketing skills for toy manufacturers. The workshop aimed to improve India’s position in the global toy supply chain and help manufacturers understand online selling, which can boost sales and market reach.

Key topics discussed included increasing online platform sourcing, onboarding manufacturers on Flipkart, and upskilling the workforce. E-commerce platforms like Flipkart provide wider customer access, reduce operational costs, offer brand exposure, and provide consumer data to help manufacturers meet market demands.

Since February 2020, India has raised import duties on toys, with the basic customs duty increasing from 20% to 60%, and then to 70% in July 2021.