The Indian Toy industry witnessed remarkable growth in Financial Year 2022-23 in comparison to Financial Year 2014-15, with the decline in imports by 52%, rise in exports by 239% and development of overall quality of the Toys available in the domestic market.
These observations have been noted in a Case Study on “Success Story of Made in India Toys” has been conducted by the Indian Institute of Management (IIM) Lucknow at the behest of Department for Promotion of Industry and Internal Trade (DPIIT).
As per the report, the efforts of the government have enabled in the creation of a more conducive manufacturing ecosystem for the Indian Toy industry.
Notably, Prime Minister Narendra Modi during his Mann ki Baat address in August 2020, expressed his desire to establish India as a global toy manufacturing hub.
It highlighted that in a span of 6 years, from 2014 to 2020, these dedicated efforts have led to the doubling of the number of manufacturing units, reduction in dependence on imported inputs from 33% to 12%, increase in gross sales value by a CAGR of 10%, and overall rise in labour productivity.
India is also emerging as a top exporting nation due to the country’s integration into the global toy value chain, along with zero-duty market access for domestically manufactured toys in countries including UAE and Australia, the report said.
The report stated that in order to position India as a viable alternative to current toy hubs of the world, i.e., China and Vietnam, consistent collaborative efforts of the Toy industry and the Government are essential for advancements in technology, embracing e-commerce, encouraging partnerships and exports, investing in brand-building, engaging with educators and parents to communicate with children, valuing cultural diversity and collaborating with regional artisans, etc.
Government has undertaken a series of initiatives including formulation of a comprehensive like the National Action Plan for Toys (NAPT) to promote designing of toys, using toys as a learning resource, monitoring quality of toys, promoting indigenous toy clusters, etc.
The report highlighted the interventions and initiatives taken by the government in order to propel the growth in the toy industry.
Comprehensive NAPT having 21 specific action points, increase in Basic Customs Duty, sample testing of import consignment, Quality Control Order, BIS standard Marks, and Cluster-based approach were some of the initiatives taken by the government to promote the toy business.