The Indian toy industry has experienced a significant leap in its growth trajectory, as evidenced by a case study conducted by the Indian Institute of Management (IIM) Lucknow, commissioned by the Department for Promotion of Industry and Internal Trade (DPIIT). The study, titled “Success Story of Made in India Toys,” showcased remarkable advancements in the sector, demonstrating a transformative journey from FY 2014-15 to FY 2022-23.
The comprehensive report highlights substantial achievements in various facets of the Indian toy industry. Notable observations include a commendable 52% decline in imports, a staggering 239% surge in exports, and an overall enhancement in the quality of toys available in the domestic market.
According to the study, governmental efforts have played a pivotal role in fostering a conducive manufacturing ecosystem for the Indian toy industry. Over a span of six years (2014-2020), these concerted endeavors have led to a doubling in the number of manufacturing units, reduced dependency on imported inputs from 33% to 12%, a compounded annual growth rate (CAGR) of 10% in gross sales value, and a notable increase in labor productivity.
India has emerged as a significant player in toy exports due to its integration into the global toy value chain. The country’s toys now enjoy zero-duty market access in various nations like the UAE and Australia. To position India as a substantial alternative to established toy hubs like China and Vietnam, collaborative efforts between the industry and the government are crucial. The report underscores the necessity for technological advancements, embracing e-commerce, fostering partnerships and exports, investing in brand-building, engaging with educators and parents, promoting cultural diversity, and collaborating with regional artisans.
Addressing these issues and propelling growth in the Indian toy industry necessitates a strategic action plan. Consequently, the government has implemented several interventions and initiatives:
- Formulation and implementation of a comprehensive National Action Plan for Toys (NAPT) involving 14 Central Ministries/Departments, coordinated by DPIIT.
- Increment in Basic Customs Duty (BCD) on toys from 20% to 70% in phases, initiated in February 2020.
- Mandating sample testing of import consignments by the Directorate General of Foreign Trade (DGFT) to curb sub-standard toy imports.
- Issuance of a Quality Control Order (QCO) for Toys effective from 01.01.2021.
- Provisions by BIS to grant licenses to toy manufacturers without testing facilities.
- Cluster-based support by the Ministry of MSME and Ministry of Textiles for domestic toy manufacturers.
These policy initiatives, coupled with domestic manufacturers’ efforts, have contributed significantly to the remarkable growth witnessed in the Indian toy industry. Prime Minister Narendra Modi’s vision to establish India as a global toy manufacturing hub continues to drive a series of initiatives, emphasizing indigenous toy promotion, innovation, and quality enhancement.
The transformation of the Indian toy industry, as highlighted by the case study, exemplifies the collective efforts and strategic interventions that have elevated the sector’s growth trajectory, making ‘Made in India’ toys a success story on both national and international fronts.