homebusiness NewsBudget 2023 | Toy makers wish more sops, lower logistics cost & lower drawback rates
Budget 2023 | Toy makers wish more sops, lower logistics cost & lower drawback rates
The Indian government is mulling Rs 3500 crore production-linked incentive scheme for the toy industry. The government believes there is strong manufacturing and export potential in the Indian toy sector which could become a $3 billion industry soon. CNBC-TV18’s Daanish Anand is at the Toy City in Greater Noida near the National Capital which is a house for a lot of toy factories to gauge the mood of toy manufacturers ahead of the Budget.
The Union Budget is just around the corner and all industries are eagerly waiting to hear what's in store for them. One such industry that is eagerly waiting for 1st February is India's toy industry. Although the Indian toy industry is a $1.5 billion strong industry, but the global market share is just 0.5 percent.
The Indian toy industry has been a priority sector for the government, as part of the drive towards greater self-reliance in manufacturing. A hike in customs duties to 60 percent, BIS certification and quality control orders have brought down imports by 67 percent in the last seven years.
Export of toys from India has increased from $96 million in 2015 to $327 million dollars in 2022. While the government wants India to soon become a powerhouse in toy manufacturing, toy makers say a lot more needs to be done.
Sunlord Apparels and Toys, an MSME, is one of the major exporters of Disney soft toys from India. The company is hoping for incentives that will make Indian toys more competitive against Chinese toys in the global market. China accounts a 70 percent of global toy exports and India's share is less than one percent. On the company's wishlist are a PLI scheme and the renewal of the technology upgradation fund.
The industry is also seeking ease of doing business measures including, reduction in logistics cost and rationalisation of drawback rates so that India can have a bigger share in the $73 billion global toy market.
The industry is also seeking ease of doing business measures including, reduction in logistics costs and rationalisation of drawback rates so that India can have a bigger share in the $73 billion global toy market.
Everyone hopes that the upcoming Budget will be a game-changer that will contribute to India's growth story. The toy industry expects that the government should announce PLI scheme for toy manufacturing, restart the technology upgradation fund and make more announcements.
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