NEW DELHI: A recent case study conducted by the Indian Institute of Management (IIM) Lucknow, commissioned by the Department for Promotion of Industry and Internal Trade (DPIIT), unveils a success story for the Indian toy industry in the fiscal year 2022-23.
The study indicates a notable decline of 52 per cent in toy imports and an impressive surge of 239 per cent in toy exports compared to the fiscal year 2014-15. The report credits the government’s dedicated efforts in the past six years for creating a more favourable manufacturing ecosystem for the Indian toy industry.
During this period, the number of manufacturing units doubled, reducing dependence on imported inputs from 33 per cent to 12 per cent. Furthermore, gross sales value witnessed a Compound Annual Growth Rate (CAGR) of 10 per cent, accompanied by an overall increase in labour productivity.
The findings highlight India’s emergence as a prominent player in the global toy value chain, evident in the country’s integration into the global toy value chain and zero-duty market access for domestically manufactured toys in nations like the UAE and Australia.
The report positions India as a viable alternative to established toy hubs like China and Vietnam. To solidify its position in the global market, the report emphasizes the need for consistent collaborative efforts between the toy industry and the government.
Key areas identified include technological advancements, e-commerce integration, partnerships and exports, brand-building investments, engagement with educators and parents for effective communication with children, valuing cultural diversity, and collaboration with regional artisans.
The Indian government has implemented various interventions and initiatives to foster growth in the toy industry. These include the formulation of a comprehensive National Action Plan for Toys (NAPT) with 21 specific action points, increase in Basic Customs Duty (BCD) on toys, sample testing of each import consignment by the Directorate General of Foreign Trade (DGFT) to curb substandard imports, issuance of a Quality Control Order (QCO) for toys in 2020, and support through cluster-based approaches.
The report indicates significant interest from global retail giant Walmart to import toys from India and sell them worldwide. Walmart has set a target of $10 billion for overall imports from India, including Indian toys.
With the concerted efforts of the government and domestic manufacturers, the Indian toy industry is projected to witness substantial growth in the next five years. Sanjeev Singh, Joint Secretary at DPIIT mentioned that the global toys industry stands at around $300 billion, whereas India holds around $1.5 billion.
Sanjeev Singh envisions a doubling of the Indian toy industry in the next five years. He revealed Walmart’s interest in Indian toys, with a target of $10 billion in overall imports from India.
Professor Sanjay Kumar Singh of IIM Lucknow notes a substantial reduction in India’s dependency on Chinese imports, from 94 per cent to 62 per cent. Over 1,200 safety licenses issued by the Bureau of Indian Standards (BIS) to domestic toy manufacturers further emphasize the safety and quality standards upheld by the industry.
The successful trajectory of the Indian toy industry, reflected in declining imports, soaring exports, and quality improvement, showcases the positive impact of collaborative efforts and strategic government interventions. As the industry sets its sights on global markets, the case study underscores the importance of continued collaboration for sustained growth and innovation in the Indian toy sector. (ANI)