The Trade and Industry Ministry on Tuesday suggested the domestic toy industry work on big ideas and build capacity to further push the country’s manufacturing and exports.
The Department of Promotion of Industry and Internal Trade (DPIIT) Additional Secretary, Anil Agarwal, said government initiatives such as increasing import duties and issuing import control order quality have helped reduce imports and boost manufacturing, and now the industry needs to ”think big ideas”.
”Their revenues have increased, but to become a unicorn (companies with a valuation of more than a billion dollars), the industry must reach another level. They need to show professionalism in their management in addition to capacity building,’ Agarwal told reporters at the toy fair in Pragati Maidan.
The fair was organized after a three-year hiatus due to COVID. No less than 96 stands presented toys made in India.
The Basic Customs Duty (BCD) on toys was increased from 20% to 60% in February 2020 to promote local manufacturing.
The government issued the Toys (Quality Control) Ordinance 2020 in February 2020. Under this order, toys must comply with the requirements of relevant Indian standards and bear the standard licensed mark. It applies to domestic and foreign manufacturers who intend to export their toys to India.
Agarwal said the import of toys in India increased from $304 million in 2018-2019 to $36 million in 2021-22.
In contrast, exports increased from USD 109 million in 2018-19 to USD 177 million in 2021-22.
Manu Gupta, promoter of Playgro Toys India, said the government initiatives were helping the industry and pushing manufacturing and reducing imports.
“We need additional government support to take the industry to the next level, generate jobs and boost exports,” he said, adding that the global toy industry is worth around $120 billion. and that India’s share is small.
The national toy policy and production-linked incentive program would help promote the industry’s growth by pushing scale, Gupta added.
Director of plush maker Jasco Handicrafts, Yashwinder S Kohli, said he was getting good orders from Middle Eastern countries.
”The efforts of the government help us enormously. My income has grown at a healthy rate and I have also increased manufacturing,” he added.