The Department of Promotion of Industry and Internal Trade (DPIIT) Additional Secretary Anil Agarwal said government initiatives such as raising import duties and issuing a control order of quality have helped reduce imports and promote manufacturing, and now industry must “think big”.
“Their revenues have increased, but to become a unicorn (companies with a valuation of over a billion dollars), the industry must reach another level. They must show professionalism in their management in addition to the reinforcement of abilities,” 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.
“Government efforts are helping us tremendously. My income has grown at a healthy rate and I have also increased manufacturing,” he added.