Indian Toy Exports - UPSC Notes | Testbook.com

The Rise in Indian Toy Exports

As per official data, the value of toy exports from India reached Rs 1,017 crore during the April-December period of the 2022-2023 fiscal year. This represents a sixfold increase compared to the same period in 2013.

Import and Export Details:

• Indian toy manufacturers export a range of products, including sports goods and toys, to approximately 129 countries worldwide.
• The top destinations for Indian toy exports include countries like the USA, the UK, Germany, Mexico, and the Netherlands.

Source: IBEF

• In the fiscal year 2021-22, India's toy imports saw a drastic reduction of 70 per cent, dropping from Rs 3000 crore to Rs 870 crore.

Key Factors Driving the Growth:

• The global toy industry, worth around $120 billion and growing at 8%, is dominated by China, which holds a 70% share.
• The Indian government has raised the customs duties on imported toys from 20% to 60%, and has also implemented strict quality control measures on toy imports.
• As countries around the world attempt to reduce their reliance on China through the 'China plus' strategy , India has seized this opportunity to expand its toy industry.
• The central government has been advocating for local manufacturing through its 'Vocal for Local' initiative and various schemes like production-linked incentives (PLI) .
• For instance, the Karnataka government has allocated 400 acres of SEZ land to establish the country’s first toy manufacturing cluster in Koppal .
• Lower land costs in comparison to other countries, along with an available workforce that can be trained in essential skills such as painting, assembly, operating moulding machines, and packaging are proving beneficial for India.
• Furthermore, India's strong laws protecting human rights and its democratic nature provide an added advantage over China.
• The availability of advanced technology and a cluster-based approach that provides world-class facilities backed by cutting-edge technologies is also contributing to cost efficiency and increased competitiveness, as seen in 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.