The Indian toy industry has seen a significant transformation over the years, especially in FY 2022-23 compared to FY 2014-15. This change is primarily due to governmental policies, interventions, and the dedicated efforts of key players in the sector. Contributing significantly to this development is the Department for Promotion of Industry and Internal Trade (DPIIT). This article presents an overview of India’s toy industry’s current status, its success story, government initiatives, and the way forward.
The Current Status of India’s Toy Industry
According to a study conducted by the Indian Institute of Management (IIM) Lucknow, the toy industry in India has displayed remarkable growth. The import of toys has declined by 52%, while there has been a 239% rise in exports. This tremendous growth indicates a shift towards self-reliance and global competitiveness. One major factor contributing to this industry’s growth is the increased quality of domestic toys, highlighting the importance of meeting international safety standards and ensuring customer satisfaction.
Key Drivers of Growth in the Toy Industry
The surge in the toy industry can be attributed to a more conducive manufacturing environment facilitated by government efforts. These include doubling the number of manufacturing units in six years, reducing dependence on imported inputs from 33% to 12%, and improving labor productivity. India’s emergence as a top exporting nation in the toy industry indicates successful integration into the global toy value chain. Zero-duty market access in countries like the UAE and Australia has also spurred growth.
Government Initiatives to Foster Growth in the Toy Industry
To stimulate further growth in the industry, the government has implemented a range of initiatives. Notable among these is the National Action Plan for Toys (NAPT), a comprehensive plan that addresses various aspects like design, quality control, and the promotion of indigenous toy clusters. The government also increased the Basic Customs Duty (BCD) on toys to protect domestic manufacturers from cheap imports and encourage local manufacturing.
Ensuring Quality Control and Support for Toy Manufacturers
To ensure better quality control, the Directorate General of Foreign Trade (DGFT) mandated sample testing for each import consignment. The government also issued a Quality Control Order (QCO) in 2020 for toys to enhance their overall quality. Special provisions include granting licenses to small units without testing facilities. Additionally, over 1200 licenses have been granted to domestic manufacturers to ensure adherence to quality standards.
Adopting a Cluster-based Approach and Promotional Initiatives
The government has adopted a cluster-based approach to support the domestic toy industry and implemented schemes like SFURTI by the Ministry of MSME. Promotional events like “The Indian Toy Fair 2021” and “Toycathon” focus on promoting indigenous toys and encouraging innovative ideas.
The Way Forward
To position India as a competitive alternative to major toy manufacturing countries like China and Vietnam, consistent collaboration between the industry and the government is crucial. Embracing technology, focusing on e-commerce, encouraging partnerships and exports, investing in brand-building, and engaging with educators and parents for effective communication with children are key aspects identified for future growth.
