Budget 2021: Government may announce framing of policy for Toys Sector
The policy will help in creating a strong ecosystem for the Toys sector industry in India and will also attract startups.
The Indian government may announce in Budget 2021 the formulation of a policy dedicated to the toys sector in order to boost its domestic manufacturing. The policy will also help in creating a strong ecosystem for the Toys sector industry in India and will also attract startups.
PM Modi had earlier mentioned that India has the ability and talent of becoming a toy hub for the whole world. He had also called upon startups to work towards realizing this potential while being ‘vocal for local toys’.
The Union Budget 2021 is all set to be presented in the Parliament on February 1, 2021. It will be conducted in two parts where the first phase of the session will begin on January 29 and will conclude on February 15, 2021.
Quality control of toys in the domestic market:
The Ministry of Commerce and Industry has already been taking steps to promote domestic manufacturing of toys.
The government has already come out with a quality control order for Toys Sector and had also increased the import duty in 2020 on the toys. It is also one of the ways of stopping the flow of cheap sub-standard toys into the domestic market.
Boosting domestic production of Toys:
Boosting the domestic manufacturing of toys in India will help in increasing the exports of toys in the international industry where Vietnam and China are the major players.
India has a low share in the international toys industry and its export account for less than 0.5% of the global demand, hence there are immense opportunities in this segment.
The other which can also be considered to increase the production in this sector include design centres for toys and research and development.
India in toy export:
The toy exports of India are limited to about USD 100 million. The industry in the country is primarily under the unorganized sector and it comprises about 4,000 small and medium enterprises.
Around 85% of toys are imported in the country where the maximum comes from China. It is then followed by Sri Lanka, Malaysia, Germany, Hong Kong, and the United States.