The government has no proposal to include the toy industry in the performance-related incentive scheme, State Minister for Trade and Industry Som Prakash said in response to a question on the issue. plans to include the domestic toy industry in the special incentive scheme, news agencies reported on Thursday.
The government has launched Production Linked Incentive (PLI) schemes in 14 sectors which will make Indian manufacturers globally competitive, attract investment, boost exports, integrate India into the global supply chain and reduce dependence on imports.
The government has provided comprehensive support to the domestic toy industry to make it more competitive.
“Some of the measures include promoting Made in India toys; design of toys based on Indian values, culture and history; using toys as a learning resource; organize hackathons and grand challenges for the design and manufacture of toys; monitor the quality of toys; restricting imports of substandard and dangerous toys and promoting indigenous toy clusters,” the minister said in his response on Wednesday.
To promote domestic toy manufacturing, the basic toy customs duty was increased from 20% to 60% at the beginning of 2020.
Notably, India’s toy exports have increased by 61.38% over the past three years. It increased from USD 202 million in 2018-19 to USD 326 million in 2021-22.
The import of toys, however, fell by 70 percent over the same period, from $371 million to $110 million, the minister said.
The Indian toy industry previously faced fierce competition from Chinese toys. However, in recent years, imports from China have decreased significantly.
Imports of toys and other game and sporting goods from China rose from $491.67 million to $252.1 million over the past five years, the data showed.