New Delhi: Prime Minister Narendra Modi in his Mann Ki Baat of August 30 stressed the need to increase local toy production and increase India’s share in the global toy market. Previously, he had asked Indian youth to innovate in the toy industry using modern technology.
The Indian toy industry is worth between 5,000 and 6,000 crore rupees, which is less than 1% of the world market. Meanwhile, it only occupies about 25 percent of the Indian market. The rest are dominated by Chinese toys, according to The Times Of India.
If Chinese toys are taken off the market, local toy suppliers will fail to meet market demand and expectations.
Due to the strained relationship between Indochina, increased import tariffs and the pandemic lockdown, the supply of Chinese toys in India has shrunk. However, there has been an increase in the demand for toys with children mostly locked in homes and without schools.
âBut at the same time, the demand for toys has increased in the past three to four months because children are locked up at home and demand more toys,â TOI said, citing Ajay Agarwal, a toy maker from Delhi. and president of the Toy Association of India. saying.
He added: “All of these factors have resulted in an increase of about 25% in the domestic demand for toys, which we are trying to meet by increasing productionâ¦ but it will take us some time.”
Even though organized manufacturers like Agarwal thrive by automating or hiring more manpower, a large number of toy manufacturers in India belong to the unorganized sector. They don’t have enough capital to suddenly increase production. Sixty percent of India’s 3,512 manufacturers operate in the unorganized sector from small units with sometimes up to five employees.
Indian toy factories closed 30 years ago due to increased competition from toys made in China, especially electric toys due to liberalization.
âWe lack the material to make electric toys. For this we have to import machines from South Korea and Japan and right now they are expensive to get with 34% import duty. If the government reduces the tariffs, we can also start making electric toys. There is great potential for growth in this industry, âAgarwal said.
On the contrary, Indian manufacturers specialize in board games, soft and plastic toys, pull toys, play dough and puzzles.