Toy manufacturing in India is about to get a giant push with the federal government actively contemplating the extension of the Manufacturing Linked Incentive (PLI) scheme to the sector with a proposed outlay of about ₹3,500 crore, in accordance with sources.
“The Division for Promotion of Business and Inner Commerce has recognized toys as a prime sector that might profit from the PLI scheme and is in energetic dialogue with the Finance Ministry on the matter. The opposite two sectors on DPIIT’s record for eligibility for PLI advantages are bicycles and leather-based footwear,” a supply monitoring the matter advised businessline.
Authorities incentives underneath the PLI scheme will doubtless be prolonged to completed toys fairly than to toy components, and solely producers who obtain the Bureau of Indian Requirements (BIS) certification for high quality could be eligible.
“Loads of our toy elements and uncooked supplies usually are not made within the nation. There are some digital elements not accessible in India in any respect. Some textile supplies utilized in mushy toys additionally have to be imported. Initially, the trade must import such elements,” the official stated.
BIS certification
India’s home toy manufacturing obtained a major enhance after the Centre elevated import duties on toys to 60 per cent from 20 per cent in February 2020, and the DPIIT got here out with a High quality Management Order (QCO) for the sector.
The order made it obligatory for all toys offered within the nation, together with these imported, to be licensed by BIS with impact from January 2021. A complete of 1,000 licences have been issued by the BIS underneath the QCO for toy manufacturing thus far with many of the small and medium sector producers going for it.
Because of this, toy imports (the most important varieties) declined 70 per cent to $110 million in 2021-22 from $371 million in 2018-19, whereas export of toys from the nation elevated 61.39 per cent to $326 million from $202 million in the identical interval, in accordance with authorities figures.
Low-quality Chinese language toys, which had been posing a critical well being hazard for kids, have virtually disappeared from markets in India, the supply added.
Attracting massive investments
“The federal government is hopeful that the introduction of the PLI scheme for the toy sector will assist entice massive investments and make the trade develop to its true potential. A lot of home manufacturers are already exporting to a number of markets and with extra money and know-how pumped into the sector, progress might be phenomenal,” he stated.
Up to now, the federal government has introduced PLI schemes for 14 sectors together with car and auto elements, electronics and IT {hardware}, telecom, prescription drugs, photo voltaic modules, metals and mining, textiles and attire, white items, drones, and superior chemistry cell batteries. PLI offers incentives based mostly on funding and turnover for producers.
