India transforms toy trade from deficit to surplus, finds survey

The government is considering a scheme for the toy sector to further boost domestic manufacturing

• Eastern Eye
• 22 July, 2024

By: Eastern Eye

The government’s initiatives, such as implementing mandatory quality standards and raising customs duties, have significantly aided domestic toy manufacturers in boosting exports and reducing reliance on Chinese imports, according to the Economic Survey released on Monday (22).

The Survey also highlighted that India’s rise as a toy-exporting nation is linked to its integration into the global value chain and gaining zero-duty market access for locally made toys in crucial markets like the UAE and Australia.

Historically, the industry has faced challenges in global trade, consistently being a net importer of toys for many years. However, the Survey noted, “Rising exports, coupled with declining imports, have transformed India from a deficit to a surplus nation in the trade of toys.” For over a decade, India heavily relied on China for about 76 per cent of its toy imports.

“India’s import bill for toys from China dropped from £165.5 million in FY13 to £32.1 million in FY24, leading to a decline in China’s share in India’s toy imports from 94 per cent in FY13 to 64 per cent in FY24, indicating India’s competitiveness in the international toy market,” the Survey said.

During the period from 2014 to 2020, focused efforts by the government also resulted in the number of manufacturing units doubling.

The measures taken by the government for the toy industry include the formulation of a comprehensive National Action Plan for Toys with 21 specific action points, an increase in basic customs duty on toys, sample testing of each import consignment to curb sub-standard imports, issuance of a Quality Control Order for toys, and support through cluster-based approaches.

The government is considering a production linked incentive (PLI) scheme for the sector to further boost the domestic manufacturing.

Toy Association of India senior vice-president and CEO of Noida-based Little Genius Toys Pvt Ltd Naresh Kumar Gautam said that the country’s exports from the sector will further grow in the coming years.

The Survey also said that India has transitioned from an arms importer and found a place in the list of the top 25 arms exporter nations.

The defence industry, including the private sector and Defence Public Sector Undertakings (DPSUs), has made efforts to achieve the highest-ever defence exports.

There has been a rise in the number of export authorisations issued to defence exporters. From 1,414 export authorisations in FY23, the number has increased to 1,507 in FY24.

About 100 domestic companies are exporting a wide range of defence products and equipment such as aircraft like Dornier-228, artillery guns, Brahmos missiles, PINAKA rockets and launchers, radars, simulators, and armoured vehicles.

To give a push to defence exports, the government has taken several policy initiatives over the past 10 years.

Export procedures have been simplified and made industry-friendly, with end-to-end online export authorisation curtailing delays and facilitating ease of doing business, the latest Economic Survey said.

On smartphones, it said that India’s domestic production and exports of smartphones have been increasing steadily, with significant changes achieved, especially since the launch of the PLI scheme in 2020.

India also became the world’s sixth-largest smartphone exporter in 2022, from 23rd in 2014.

These exports rose by 42 per cent to £12.06 billion in 2023-24. (PTI)