{"id":279451,"date":"2024-01-24T14:27:36","date_gmt":"2024-01-24T08:57:36","guid":{"rendered":"https:\/\/forumias.com\/blog\/?p=279451"},"modified":"2024-01-24T14:27:36","modified_gmt":"2024-01-24T08:57:36","slug":"on-indias-toy-industry-the-truth-about-indias-booming-toy-exports","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/on-indias-toy-industry-the-truth-about-indias-booming-toy-exports\/","title":{"rendered":"On India’s toy industry- The truth about India\u2019s booming toy exports"},"content":{"rendered":"

Source<\/strong>: The post India’s toy industry has been created, based on the article \u201cThe<\/strong> truth<\/strong> about<\/strong> India<\/strong>\u2019<\/strong>s<\/strong> booming<\/strong> toy<\/strong> exports<\/strong>\u201d published in \u201cThe<\/strong> Hindu<\/strong>\u201d on 24th January 2024.<\/p>\n

UPSC<\/strong> Syllabus<\/strong> Topic<\/strong>:<\/strong> GS paper 3- Indian economy- changes in industrial policy and their effects on industrial growth.<\/p>\n

News<\/strong>: The article discusses how India’s toy industry became a net exporter since 2020-21.<\/p>\n

What is the current state of India’s toy industry?<\/strong><\/h2>\n

Net Exporter Status<\/strong>: <\/strong>The trade balance was negative \u20b91,500 crore in 2014-15, which turned positive from 2020-21 after a gap of 23 years.<\/p>\n

Significant Export Growth<\/strong>:<\/strong> There was a 239% increase in toy exports between 2014-15 and 2022-23.<\/p>\n

Decline in Imports<\/strong>:<\/strong> Imports of toys decreased by 52% in the same period.<\/p>\n

Rise in Import Duty<\/strong>:<\/strong> Customs duty on toys was raised from 20% to 60% in 2020 and then to 70% in 2023.<\/p>\n

What are the factors responsible for the improvement of India’s toy industry?<\/strong><\/h2>\n

Protectionist Policies<\/strong>: <\/strong>The shift in the toy industry’s performance is attributed to the government’s protectionist measures, such as increased tariffs and import restrictions.<\/p>\n

Implementation of Non-Tariff Barriers<\/strong>:<\/strong> The introduction of quality control orders and mandatory testing for each import consignment made it tougher for foreign toys to enter the Indian market.<\/p>\n

Global Supply Chain Disruption<\/strong>: <\/strong>The COVID-19 pandemic disrupted global supply chains, affecting toy imports and indirectly benefiting domestic producers.<\/p>\n

Government Initiatives<\/strong>:<\/strong> The ‘Make in India’ campaign, initiated in 2014, aimed to boost domestic manufacturing, which included the toy industry.<\/p>\n

What are the major concerns related to India’s toy industry?<\/strong><\/h2>\n

Over-Reliance on Protectionism<\/strong>: <\/strong>The industry’s growth is attributed to high import duties and trade barriers, which may not be viable long-term strategies. Prolonged reliance on protectionist measures might hinder the industry’s global competitiveness.<\/p>\n

Limited Improvement in Domestic Production<\/strong>: <\/strong>There’s been no significant enhancement in domestic toy manufacturing, with labor productivity declining from \u20b97.5 lakh per worker in 2014-15 to \u20b95 lakh in 2019-20.<\/p>\n

Potential for Rent-Seeking Behavior<\/strong>: <\/strong>There’s a concern that continuous protective measures could lead to inefficiencies and focus on maintaining government support instead of improving productivity or innovation.<\/p>\n

What should be done?<\/strong><\/h2>\n

Complementing Protectionism with Investment<\/strong>:<\/strong> Pair protectionist policies with investment in the toy industry to enhance productivity and innovation.<\/p>\n

Focus on Domestic Capability Expansion<\/strong>:<\/strong> Invest in developing local manufacturing capabilities, considering the lack of significant improvement in domestic toy production.<\/p>\n

Providing Industry-Specific Infrastructure<\/strong>:<\/strong> Develop public infrastructure tailored to the needs of the toy industry to support its growth.<\/p>\n

Preventing Policy Entrenchment<\/strong>:<\/strong> Avoid the long-term entrenchment of protectionist policies, which could lead to inefficiency and rent-seeking behavior.<\/p>\n

Transparent Policy Review and Dialogue<\/strong>:<\/strong> Make research studies like the IIM-L report public for better policy understanding and effective decision-making.<\/p>\n

Question for practice:<\/strong><\/p>\n

What are the key factors responsible for the improvement of India’s toy industry, and what are the major concerns associated with it?<\/p>\n","protected":false},"excerpt":{"rendered":"

Source: The post India’s toy industry has been created, based on the article \u201cThe truth about India\u2019s booming toy exports\u201d published in \u201cThe Hindu\u201d on 24th January 2024. UPSC Syllabus Topic: GS paper 3- Indian economy- changes in industrial policy and their effects on industrial growth. News: The article discusses how India’s toy industry became… Continue reading On India’s toy industry- The truth about India\u2019s booming toy exports<\/span><\/a><\/p>\n","protected":false},"author":10320,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,167],"tags":[216,8184,10498],"class_list":["post-279451","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-economy-subject","tag-gs-paper-3","tag-indian-economy","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\/279451","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\/10320"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=279451"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/279451\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=279451"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=279451"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=279451"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}