{"id":38918,"date":"2024-01-05T11:29:21","date_gmt":"2024-01-05T05:59:21","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=38918"},"modified":"2025-04-23T22:19:37","modified_gmt":"2025-04-23T16:49:37","slug":"toy-industry","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/toy-industry\/","title":{"rendered":"Toy Industry in India: Registers 239% Increase in Toy Exports in 2022-2023"},"content":{"rendered":"<h2>What\u2019s in Today\u2019s Article?<\/h2>\n<ul>\n<li>Why in News?<\/li>\n<li>Toy Industry in India<\/li>\n<li>Steps Taken by the Government of India to Promote Toy Sector<\/li>\n<li>Highlights of the Case Study on \u201cSuccess Story of Made in India Toys\u201d<\/li>\n<li>Way Ahead to Promote Indian Toy Sector<\/li>\n<\/ul>\n<h2>Why in News?<\/h2>\n<ul>\n<li>According to a case study on \u201cSuccess Story of Made in India Toys\u201d released by the DPIIT, the Indian Toy industry witnessed a rise of 239% in exports (and decline in imports by 52%) in 2022-23 as compared to 2014-15.<\/li>\n<\/ul>\n<h2>Toy Industry in India<\/h2>\n<p><img decoding=\"async\" src=\"https:\/\/vajiramandravi.s3.us-east-1.amazonaws.com\/media\/editor_images\/2024\/1\/5\/14\/11\/9\/6597c0a5f228b405a49195aa_OI.PNG\" alt=\"\" \/><\/p>\n<ul>\n<li>Evolution:\n<ul>\n<li>Asia\u2019s successful industrialising nations [Japan (a century ago), China (since 1980s) and currently Vietnam] promoted toy exports for job creation.<\/li>\n<li>However, toy manufacturing remained stagnant, archaic and fragmented in India, which followed an inward-oriented industrial policy (import tariffs and reservation policy) in the Planning-era, affecting domestic production.<\/li>\n<li>With the introduction of LPG reforms in India in the 1990s, new enterprises entered the organised toy manufacturing sector, and productivity growth increased.<\/li>\n<li>Despite early encouraging signs, industry de-reservation was unable to sustain output, investment and productivity development beyond 2007-08.<\/li>\n<\/ul>\n<\/li>\n<li>Data related to growth:\n<ul>\n<li>In 2015-16, the industry had about 15,000 enterprises in both organised and unorganised sectors, producing toys worth \u20b91,688 crore and employing 35,000 workers.<\/li>\n<li>Between 2000 and 2016, industry output was halved in real terms with job losses and the industry witnessed negative productivity growth between 2014-19.\n<ul>\n<li>As a result, imports rose by nearly 3 times as much as exports and accounted for up to 80% of domestic sales.<\/li>\n<li>India hardly figures in the global toy trade, with its exports at a mere half-a-percentage point.<\/li>\n<\/ul>\n<\/li>\n<li>The Indian PM (during his Mann ki Baat address in August 2020) expressed his desire to establish India as a global Toy manufacturing hub.<\/li>\n<li>Between 2018-19 and 2021-22, toy exports increased from \u20b9812 crore to \u20b91,237 crore and imports declined from \u20b92,593 crore to \u20b9819 crore.<\/li>\n<\/ul>\n<\/li>\n<li>Challenges: The industry&#8217;s ability to sustain net exports is limited, as it has made minimal investments to increase output and exports.<\/li>\n<\/ul>\n<h2>Steps Taken by the Government of India to Promote Toy Sector<\/h2>\n<ul>\n<li>Make in India initiative (2014).<\/li>\n<li>National Action Plan for Toys (NAPT) to promote the designing of toys, using toys as a learning resource, monitoring the quality of toys and promoting indigenous toy clusters.<\/li>\n<li>Basic custom duty on toys (tripled from 20% to 60% in 2020).<\/li>\n<li>The Directorate General of Foreign Trade (DGFT) has mandated sample testing of each import consignment to curb the import of sub-standards toys.<\/li>\n<li>Numerous non-tariff barriers [a Quality Control Order (QCO) for Toys was issued in 2020] were imposed.<\/li>\n<li>The Ministry of MSME is supporting 19 Toy clusters under the Scheme of Funds for the Regeneration of Traditional Industries (SFURTI).<\/li>\n<li>The Ministry of Textiles is providing designing and tooling support to 13 Toy clusters.<\/li>\n<li>Several promotional initiatives have also been undertaken to promote indigenous toys and encourage innovation, including the Indian Toy Fair 2021, Toycathon, etc.<\/li>\n<\/ul>\n<h2>Highlights of the Case Study on \u201cSuccess Story of Made in India Toys\u201d<\/h2>\n<ul>\n<li>The case study has been conducted by the Indian Institute of Management (IIM) Lucknow at the behest of Department for Promotion of Industry and Internal Trade (DPIIT).<\/li>\n<li>The Central Government has enabled a more conducive manufacturing ecosystem for the Indian Toy industry.<\/li>\n<li>In a span of 6 years (2014 to 2020), these dedicated efforts have led to the doubling of the number of manufacturing units.<\/li>\n<li>It helped in the reduction in dependence on imported inputs from 33 to 12% and increase in gross sales value by a CAGR of 10%, and overall rise in labour productivity.<\/li>\n<li>India is also emerging as a top exporting nation due to the country&#8217;s integration into the global toy value chain, along with zero-duty market access for domestically manufactured toys in countries including UAE and Australia.<\/li>\n<\/ul>\n<figure class=\"media\">\n<div data-oembed-url=\"https:\/\/www.youtube.com\/watch?v=mvgUhz3-dos\">\n<div><iframe src=\"https:\/\/www.youtube.com\/embed\/mvgUhz3-dos\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\"><\/iframe><\/div>\n<\/div>\n<\/figure>\n<h2>Way Ahead to Promote Indian Toy Sector<\/h2>\n<ul>\n<li>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\n<ul>\n<li>Advancements in technology,<\/li>\n<li>Embracing e-commerce,<\/li>\n<li>Encouraging partnerships and exports,<\/li>\n<li>Investing in brand-building,<\/li>\n<li>Engaging with educators and parents to communicate with children,<\/li>\n<li>Valuing cultural diversity and collaborating with regional artisans, etc.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<hr \/>\n<h3>Q1) What is the Scheme of Funds for the Regeneration of Traditional Industries (SFURTI)?<\/h3>\n<p>SFURTI is an initiative by the Ministry of MSME to organise the traditional industries and artisans into clusters to make them competitive and provide support for their long-term sustainability.<\/p>\n<h3>Q2) What is the Department for Promotion of Industry and Internal Trade (DPIIT)?<\/h3>\n<p>The DPIIT is a central government department under the Ministry of Commerce and Industry in India. It is responsible for formulation and implementation of promotional and developmental measures for growth of the industrial sector.<\/p>\n<hr \/>\n<p><strong>Source: <\/strong><a href=\"https:\/\/newsonair.gov.in\/Main-News-Details.aspx?id=474538\" target=\"_blank\" rel=\"nofollow noopener\"><u>Toy Industry registers 239 percent increase in toy exports in 2022-2023<\/u><\/a><u> | <\/u><a href=\"https:\/\/pib.gov.in\/PressReleaseIframePage.aspx?PRID=1993109\" target=\"_blank\" rel=\"nofollow noopener\"><u>PIB<\/u><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Indian Toy industry witnessed a rise of 239% in exports and a decline in imports by 52% in 2022-23 as compared to 2014-15.<\/p>\n","protected":false},"author":5,"featured_media":38919,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[18],"tags":[],"class_list":{"0":"post-38918","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-upsc-mains-current-affairs","8":"no-featured-image-padding"},"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/38918","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=38918"}],"version-history":[{"count":0,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/38918\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/38919"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=38918"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=38918"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=38918"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}