A Game Changer

 

 

 

 

COVID-19 pandemic and border conflicts with China have made India ponder on self-reliance on many of its industries, whose markets are currently under the monopoly of Chinese manufacturers. One such untapped sector is the toy industry which generates revenue of 7 lakh crore rupees at the International market. To unleash India’s potential in becoming a possible global producer of toys; Prime Minister Narendra Modi during his 68th edition of ‘Mann Ki Baat’ elaborated his vision for the Indian toy industry. PM’s call for ‘vocal for local’ and his ‘Mann Ki Baat’ address has made the public conscious about the need for using domestically manufactured products for the benefit of our nation and its society.

 

The Indian toy market is worth 8000 crore rupees, out of which only 25% accounts from the sale of Indian made toys. The rest 75% share of the toy market in India is held by Chinese products. Out of the Indian toy manufactures (totalling to 4000) – 75% of them belong to the micro category, 22% to the Small and Medium Enterprises and the rest 3% are large scale manufacturers. China’s technological superiority above the Indian firms, their government’s single window clearance mechanism for entrepreneurship and special incentives given to the manufacturers have lead to the near extinction of our domestic toy industry. But due to the recent lockdown and Indian government’s decision to raise import duty on toys from 20% to 60% along with issuing Quality Control Order, our domestic industry is up for a revival. The lockdown restrictions have resulted in children demanding for more toys. Hence the demand has increased hope for this industry, but still, Indian toy manufacturers are finding it hard to increase the production spontaneously.

 

India’s demography could be a vital factor for the growth of our toy Industry. 50% of the total Indians are under the age of 25. In his Mann Ki Baat conversation, PM Modi not only spoke about toys but also highlighted the need for bringing in Indian ideas to the mobile/computer games. He observed that almost all such games are crafted in the western framework. India, being one of the majors in the software business, can create indigenous games and use it as a soft power to exert its influence on the youth from other parts of the world too. As per a report published by the IMARC, geographically, Maharashtra is the largest market for toys followed by Tamil Nadu, Karnataka, Gujarat and Delhi. The proposed establishment of clusters in these states can generate employment on a large scale since the global toy market is undergoing phenomenal growth.

 

Karnataka was the first state to respond instantly to the Prime Minister’s call for ‘Aatmanirbhar’ toy industry. Chief Minister B.S Yediyurappa had announced that India’s first toy manufacturing cluster was to be set up in the district of Koppala, well known for its Kinhala toys. The cluster would invite an initial investment of 4,000 crore rupees and will generate 40,000 job opportunities in the next 5 years. This was followed by Uttar Pradesh, which allotted 100 acres of land for the construction of a toy city. 90 traders had applied to open new factories in the city, projecting an overall investment of 20,000 crore rupees. Gujarat government has also shown interest in developing clusters for toy cities. They also invited international toy manufacturers like Hasbro, Mattel, Siumba toys, Namco Bandai, Jakks Pacific and Lego to set up manufacturing hubs in Gujarat- a state famously known for its entrepreneurial history. What we can offer to these international brands is India’s market with 25% population within the 0-14 age group.

 

PM Modi mentioned the name of C.V Raju hailing from Andhra Pradesh in his Mann Ki Baat program. Raju makes Etikoppaka toys which are indigenous to the Etikoppaka village in Visakhapatnam. What makes these toys special is the absence of any sharp edges on it. These are made from wood, carefully polished and made in circular shape. PM also emphasised on the need to use indigenous toys with cultural connect to impart skills among the children. Some of the ethnic toy manufacturing places are Channapatna in Karnataka, Sambalpur in Odisha, Udaipur in Rajastan, Kondapalli in Andhra Pradesh, Varanasi in U.P and Katwa in West Bengal.

 

 

There have been multiple reports suggesting the presence of toxic substances on Chinese toys. A study done by the Quality Council of India in 2019 found that 67% of the Chinese origin toys available in the Indian market failed to clear the Indian safety standards. Another study by the European Environmental Bureau categorised 92% of Chinese toys in the “serious risk” category. These cheap products made out of low-quality materials are highly hazardous to the children. What we shouldn’t ignore is China’s ability to manipulate different nations and their collectives. Many of the toys containing poisonous substances had the fitness certification of competent authorities. India should use its domestically manufactured products, which are reliable, trustworthy and made out of fine raw materials to replace Chinese products in the international market. At the same time, awareness programs sponsored by the government should be organised at the national and international levels.

 

What needs to be further seen is India’s future scope in the toy industry. This industry can generate enormous employment opportunities and also reduce the Chinese influence in the market. There has been a global resentment against China post-COVID outbreak and many nations have openly called for shifting supply chains out of the communist state. Being an Asian giant and a viable alternative to China, India can become an industry leader in toy manufacturing. With Modi government launching multiple schemes under Aatmanirbhar Bharat initiative to make India a producer for the world, our toy Industry is all set for a big push for global dominance.