January 19, 2024
The Indian toy industry witnessed remarkable growth in FY 2022-23 in comparison to FY 2014-15, with the decline in imports by 52%, rise in exports by 239% and development of overall quality of the Toys available in the domestic market. These observations have been noted in a Case Study on “Success Story of Made in India Toys” conducted by the Indian Institute of Management (IIM) Lucknow at the behest of Department for Promotion of Industry and Internal Trade (DPIIT).
The report states that the efforts of the Government have enabled in creation of a more conducive manufacturing ecosystem for the Indian toy industry. It highlighted that in a span of 6 years, from 2014 to 2020, these dedicated efforts have led to the doubling of the number of manufacturing units, reduction in dependence on imported inputs from 33% to 12%, increase in gross sales value by a CAGR of 10%, and overall rise in labour productivity.
The report analysed that India is also emerging as a top exporting nation due to the country’s integration into the global toy value chain, along with zero-duty market access for domestically manufactured toys in countries including UAE and Australia. The report stated that in order to position India as a viable alternative to current toy hubs of the world, i.e., China and Vietnam, consistent collaborative efforts of the Toy industry and the Government are essential for advancements in technology, embracing e-commerce, encouraging partnerships and exports, investing in brand-building, engaging with educators and parents to communicate with children, valuing cultural diversity and collaborating with regional artisans, etc.
The report emphasised that to address these issues and foster growth in the Indian toy industry, a strategic plan of action was needed. The government has implemented several interventions and initiatives, including:
In line with the recommendations made in the report, the government has already initiated/ undertaken measures under the NAPT.
Prime Minister Shri Narendra Modi during his “Mann ki Baat” address in August 2020, expressed his desire to establish India as a global toy manufacturing hub. To fulfil the vision, the government has undertaken a series of initiatives including formulation of a comprehensive like the National Action Plan for Toys (NAPT) to promote designing of toys, using toys as a learning resource, monitoring quality of toys, promoting indigenous toy clusters, etc.
The policy initiatives of the government together with the endeavours of the domestic manufacturers have resulted in remarkable growth of the Indian toy industry.