MUMBAI: The toy manufacturing sector – which has seen exports growth stagnating over the past couple of years – is now hoping for a PLI scheme to revive its fortunes.
The industry is confident of a production-linked incentive scheme for the sector in FY25 even though several government officials have denied the government is considering a PLI scheme for the sector.
The government sources have denied a PLI scheme for the sector as it feels the industry has already benefitted from a hike in customs duty on toys from 20% to 70% and the quality control measures taken by the government. Sources also said that the PLI scheme was mainly aimed at helping the sunrise sector, and toys manufacturing is not part of that sector.
Manasvi Singh, Co-Founder of Jammbo, a toy manufacturing start-up, told TNIE that the industry is confident that a PLI scheme for the sector would come into force by 1 April 2025. Manasvi Singh even quoted the figure of Rs 3,400 crore that the government has already allocated for the PLI scheme for the sector.
A top office bearer of the Toys Association of India has also confirmed that the PLI for the toys sector is one of the top considerations of the government.
The introduction of higher import duties and the quality control measures has significantly impacted the toy trade in India with India's toy imports falling drastically from $304.1 million in FY19 to $64.9 million in FY24.
During the same time, exports increased modestly from $109 million to $177 million. However, by FY24, exports have decreased to $152.3 million.
Mansavi of Jammbo, a company that started operations in August 2023 and has touched Rs 30 crore sales both online and offline, the toy industry needs the PLI scheme to ensure real manufacturing in the sector.