Tariff: India toy industry in better condition, domestic manufacturing to be strengthened
New Delhi| India is in a better position amid the trade war that started after America increased tariffs. Indian exporters can benefit more than competing countries like China and Vietnam. The domestic toy industry is also all set to take advantage of the opportunity.
Exporters say, to increase international reach, the toy industry has started expanding capacity and forming joint ventures with global companies even before the tariff war begins. Sunlord Group promoter Amitabh Kharbanda said the trade agreement with the US will also help toy companies increase exports. The budget announcement of creating a National Action Plan for Toys will help in expanding this sector.
Companies want to set up plants in India
Manu Gupta, CEO of Playgro Toys India, said, China exports $80 billion and Vietnam about $6 billion worth of toys. Now their products will be charged more than Indian toys in America. In such a situation, top toy companies from many countries want to set up plants in India. India’s toy exports have ranged between $326 million and $348 million for the past three years.
Dependence on China decreased
The import bill for toys from China was $214 million in 2012-13, declining to $416 million in 2023-24. China’s share of toy imports also declined from 94 per cent to 64 per cent.
Domestic manufacturing will have to be strengthened
FICCI says India should intensify efforts to strengthen domestic manufacturing to reap the benefits. Especially under Make in India and Self-reliant India schemes. India should identify and strengthen those sectors which are less dependent on favorable trade differences. This will provide long-term protection against future tariff shocks.
