Indian Toy Exports [UPSC Notes]

The Indian toy story has been making waves of late. Exports have soared and imports of toys subsided during this period. In this article, you can learn all about Indian toy exports and imports and why this industry is doing well. This is an important topic for the IAS exam economy segment.

Indian Toy Exports

According to government data, toy exports from India touched Rs 1,017 crore during the April-December period in the current fiscal year 2022-2023. In comparison to 2013 during the April-December period, India’s toy exports increased sixfold during April-December 2022.

Import and Export Data:

• The Indian toy industry exports sports-related goods and toys to about 129 countries across the globe. 
• India’s major toy export destinations include the USA, the UK, Germany, Mexico, and the Netherlands.

Source: IBEF

• The overall import of toys in India reduced by 70 per cent from Rs 3000 crore to Rs 870 crore in 2021-22.

Major Factors behind the Success Story:

• China accounts for nearly 70% of the global toy industry which is estimated at $120 billion and growing at around 8%.
• Indian government increased the customs duties on toys from 20% to 60% and imposed stringent quality checks on toy imports.
• With the world countries looking to diversify over-reliance on China through China plus strategy, India capitalized on the emerging opportunity.
• The Central government has been emphasizing local manufacturing through its Vocal for Local initiative and through various schemes like production-linked incentives (PLI).
• The National Action Plan for Toys was introduced by the government in 2020 to incentivize the Indian toy industry particularly traditional handicrafts and handmade toys with the objective of making India a global hub for toy manufacturing.
• The union government is also providing various subsidies for capital investment, the wage of labour, interest subsidy, freight subsidy, etc. 
• Active support is also provided by state governments where toy manufacturing is concentrated such as Uttar Pradesh, Maharashtra, Karnataka, and Tamil Nadu. 
• For example, the Karnataka government authorized 400 acres of SEZ land to set up the country’s first toy manufacturing cluster in Koppal. 
• Low land costs when compared to other countries, and the availability of labour who can be trained in various skills like painting, assembly, operating moulding machines and packaging are turning the tide in India’s favour.
• Stringent laws in India which protect human rights and democratic nature are also adding to the advantage when compared to China.
• Availability of good connectivity infrastructure through various modes such as rail, road, etc. E.g., Koppal also has good sea, rail, air, and road connectivity.
• Availability of technology and cluster-based approach which provide world-class facilities backed by state-of-the-art technologies is also adding to cost efficiency and increased competitiveness as in the case of the Koppal cluster.
• The Ministry of MSME is implementing various schemes to promote the MSME sector including the toy industry by providing credit support for establishing new enterprises, and the upgradation of technology, skill and infrastructure.

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