The Indian toy industry has witnessed a significant transformation over the past few years, as highlighted by the Ministry of Commerce and Industry. The financial year 2022-23 marked a pivotal point with a 52% reduction in toy imports and a staggering 239% increase in exports compared to the figures from the financial year 2014-15.
Detailed Insights and Developments
- Growth and Development Dynamics: The Indian Institute of Management Lucknow conducted a case study titled “Success Story of Made in India Toys,” which revealed a doubling of manufacturing units from 2014 to 2020. This was coupled with a decrease in dependence on imported inputs from 33% to 12%, and an increase in the gross sales value by a compound annual growth rate (CAGR) of 10%.
- Strategic Government Initiatives:
- National Action Plan for Toys (NAPT): This plan encompasses 21 specific action points, implemented across 14 central ministries/departments, with the Department for Promotion of Industry and Internal Trade (DPIIT) coordinating.
- Customs Duty Adjustments: Basic Customs Duty on toys was raised to 60% in February 2020 and further increased to 70% in March 2023, aiming to protect domestic manufacturers.
- Quality Standards Enforcement: A Quality Control Order for toys was issued, effective from January 2021, to enhance the quality of domestically available toys.
- Export Market Expansion: The rise in exports is attributed to India’s integration into the global toy value chain and zero-duty market access in countries like the UAE and Australia. This positions India as a strong competitor to existing toy manufacturing hubs such as China and Vietnam.
- Industry and Government Collaboration: The report underscores the importance of sustained collaborative efforts between the toy industry and the government. This involves advancing technology, embracing e-commerce, fostering partnerships and exports, and investing in brand-building.
- Cluster-Based Approach for Support: The Ministry of Micro, Small and Medium Enterprises (MSME) is supporting 19 toy clusters, and the Ministry of Textiles provides designing and tooling support to 13 clusters. This approach is vital for the development of the domestic toy industry.
- Promotional and Innovation Initiatives: The Indian Toy Fair 2021 and Toycathon are among the several initiatives undertaken to promote indigenous toys and encourage innovation in the sector.
Conclusion
The Indian toy industry’s remarkable journey from a heavy reliance on imports to becoming a significant player in the global toy market demonstrates the effectiveness of strategic planning and robust government support. The industry’s growth not only contributes to the economy but also showcases India’s potential as a global manufacturing hub.