<\/p>\n
Source<\/span><\/b>: The post is based on the article <\/span>\u201c<\/span><\/b>Unboxing the \u2018export turnaround\u2019 in India\u2019s toy story<\/span><\/b>\u201d <\/span><\/b>published in <\/span>\u201cThe Hindu\u201d <\/span><\/b>on <\/span>31st May 2023<\/span><\/b>.<\/span>\u00a0<\/span><\/p>\n Syllabus: <\/span><\/b>GS3- Indian economy<\/span>\u00a0<\/span><\/p>\n Relevance<\/span><\/b>: About Indian toy industry.<\/span><\/p>\n News<\/span><\/b>:\u00a0India has recently turned a net exporter of toys, during 2020-21 and 2021-22. Between 2018-19 and 2021-22, toy exports increased from \u20b9812 crore to 1,237 crore. Imports declined from $371 2,593 crore to \u20b9819 crore.\u00a0<\/span>\u00a0<\/span><\/p>\n India\u2019s toy industry is minuscule. In 2015-16, the industry had about <\/span>15,000 enterprises. <\/span><\/b>They produced toys valued at <\/span>\u20b91,688 crores and employed 35,000 workers.<\/span><\/b>\u00a0<\/span>\u00a0<\/span><\/p>\n Registered factories accounted for <\/span>1% of the number of factories and enterprises.<\/span><\/b> They employed 20% of workers and produced 77% of the value of output. <\/span>\u00a0<\/span><\/p>\n Between 2000 and 2016, industry output was <\/span>halved in real terms<\/span><\/b> with job losses. Imports accounted for up to <\/span>80% of domestic sales<\/span><\/b> until recently. Between 2000 and 2018-19, imports rose by nearly three times as much as exports.<\/span>\u00a0<\/span><\/p>\n India hardly figures in the <\/span>global toy trade<\/span><\/b>. Its exports are merely a half-percentage point of total global export. <\/span>\u00a0<\/span><\/p>\n Imports contracted as the<\/span> basic customs duty <\/span><\/b>on toys tripled from 20% to 60% in February 2020. <\/span>\u00a0<\/span><\/p>\n Numerous<\/span> non-tariff barriers<\/span><\/b> were imposed as well such as <\/span>production registration orders and safety regulation codes<\/span><\/b>. It contributed to import contraction.<\/span>\u00a0<\/span><\/p>\n Historically, Asia\u2019s successful industrialising nations promoted <\/span>toy exports for job creation<\/span><\/b>. For example, Japan started about a century ago, China since the 1980s, and currently Vietnam is following in their footsteps. <\/span>\u00a0<\/span><\/p>\n India followed an i<\/strong><\/span>nward-oriented industrial policy<\/span><\/b> in the planning era. It provided a <\/span>\u201cdouble protection\u201d by import tariffs and reservation of the product<\/span><\/b> for the small-scale sector.\u00a0<\/span>As a result, toy manufacturing remained<\/span> stagnant, archaic and fragmented.\u00a0<\/span><\/b>\u00a0<\/span><\/p>\n In 1997, the r<\/strong><\/span>eservation policy<\/span><\/b> was abolished. New firms entered the organised sector, but only for a while. <\/span>Productivity growth<\/span><\/b> improved. But the unorganised sector languished with job losses.<\/span>\u00a0<\/span><\/p>\n There is no evidence of <\/span>\u2018Make in India\u2019<\/span><\/b> positively affecting the toy industry on a <\/span>sustained basis<\/span><\/b>. The output of the informal or unorganised sector shrank. But, it continues to account for the majority of establishments and employment.<\/span>\u00a0<\/span><\/p>\n Industry<\/span> de-reservation<\/span><\/b> failed to sustain <\/span>output, investment, and productivity growth<\/span><\/b> after 2007-08. \u2018<\/span>\u00a0<\/span><\/p>\n Neither the <\/span>reservation policy nor its abolition after the liberal reforms<\/span><\/b> boosted the industry\u2019s performance.\u00a0<\/span>\u00a0<\/span><\/p>\n One should perhaps look beyond <\/span>simplistic binaries of planning versus reforms<\/span><\/b>. There is a need to examine the <\/span>ground reality of industrial locations and cluster<\/span><\/b>s<\/strong> to make policies and institutions to nurture such industries.<\/span>\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":" Source: The post is based on the article \u201cUnboxing the \u2018export turnaround\u2019 in India\u2019s toy story\u201d published in \u201cThe Hindu\u201d on 31st May 2023.\u00a0 Syllabus: GS3- Indian economy\u00a0 Relevance: About Indian toy industry. News:\u00a0India has recently turned a net exporter of toys, during 2020-21 and 2021-22. Between 2018-19 and 2021-22, toy exports increased from \u20b9812… Continue reading Indian toy industry: Unboxing the \u2018export turnaround\u2019 in India\u2019s toy story\u00a0<\/span><\/a><\/p>\n","protected":false},"author":10311,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,9],"tags":[216,10498],"class_list":["post-245645","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-gs-paper-3","tag-the-hindu","entry"],"jetpack_featured_media_url":"","views":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/245645","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10311"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=245645"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/245645\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=245645"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=245645"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=245645"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}How has been the performance of the Indian toy industry?<\/span><\/b><\/h2>\n
What explains the sharp turnaround in the toy trade in just three years?<\/span><\/b><\/h2>\n
How is the scenario of the Indian toy industry different from other countries in Asia?<\/span><\/b>\u00a0<\/span><\/h2>\n
How do more recent policy initiatives, such as \u2018Make in India\u2019, have a bearing on the Indian toy industry?<\/span><\/b>\u00a0<\/span><\/h2>\n
What is the way forward for the growth of the toy industry?<\/span><\/b><\/h2>\n