The toy industry in India should be brought under the Production Linked Incentive (PLI) Scheme to make it competitive and get it on a fast-growth mode, said Aravind Melligeri, chairman and CEO, Aequs.
“Toy sector can be a force multiplier for the socio-economic development of tier-II and tier-III cities in the country given its potential to generate jobs at scale,’’ said Mr. Melligeri.
For every $10 million generated in revenue, the toy industry has the potential to create 1,000 direct and several thousand downstream jobs in the country, he added.
“In addition to the skilled labour and technological expertise, India also has a cost advantage over global toy makers, including China, Vietnam and Thailand. For instance, the current cost of labour in India is one-third that of China. In all counts, I feel there is a strong case for extending the PLI Scheme to the sector,’’ Mr. Melligeri advocated.
The Toy Association of India (TAI), that has over 500 toy manufacturers as its members, also said getting the industry under the PLI scheme was critical for its growth. The country has over 4,000 toy makers under diverse categories and only 10% of them are now in the organised sector.
“The apex body has already made a written submission to the Department Related Parliamentary Standing Committee on Commerce for the inclusion of toys sector under the PLI scheme. Such a move will usher in quantum growth for the industry and make it globally competitive,’’ said TAI General Secretary Sharad Kapoor.
The global toy market is currently estimated to be about $80-100 billion while India accounts for a minuscule share of this in the region of $1.5 billion. However, the country’s toy sector is projected to grow at a CAGR of 15% between 2021 and 2026, according to industry estimates.