Union budget 2021 | Government may announce the development of a policy for the toys sector
The government may within the Budget next week announce formulation of a fanatical policy for the toys sector to spice up domestic manufacturing, sources said.
They said the policy will help in creating a robust ecosystem for the industry within the country and also attract startups.
The Commerce And Industry Ministry is already taking steps to market domestic manufacturing of toys. it’s came out with a top quality control order for the world and had also increased duty last year on toys.
Quality control order is one among the ways to prevent flow of cheap sub-standard toys into the domestic market.
A source said that the country has low share within the international toys industry and India’s exports account for fewer than 0.5% of worldwide demand, so there are immense opportunities during this segment.
The other areas which might be considered for the world include promotion of research and development and style centres for toys.
“Boosting manufacturing would also help increase exports of toys from India. Countries like China and Vietnam are major players within the sector,” they added.
India’s toy exports are limited to about $100 million.
The toys industry in India is primarily within the unorganised sector, comprising about 4,000 small and medium enterprises.
About 85% of toys are imported within the country, with maximum coming from China. it’s followed by Sri Lanka , Malaysia, Germany, Hong Kong and therefore the U.S.
Prime Minister Narendra Modi had said that India has talent and skill to become a toy hub for the whole world and called upon startups to figure towards realising this potential while being “vocal about local toys”.