While the US has imposed an additional 26 per cent import duty on India, its competitor Vietnam is facing 46 per cent tariff, Bangladesh 37 per cent, China 54 per cent, Indonesia 32 per cent, and Thailand 36 per cent.
“Huge opportunities are there for our exporters now. Vietnam’s exports are about USD 6 billion and China’s are USD 80 billion. Now their items will face higher duties in the US than that of Indian toys. All big toy firms are exploring opportunities to set up plants in India,” the CEO of Playgro Toys India, Manu Gupta, said.
India’s toy exports are hovering in the range of USD 326 million to USD 348 million for the last three years, according to the industry.
He said that early conclusion of a bilateral trade agreement with the US will also help Indian toy players to increase shipments.
Gupta said that along with the centre, now states too are making sector specific policies to attract investments. “States like Madhya Pradesh, Karnataka, Odisha, Haryana and Bihar are coming forward with their policies for us,” he said adding top wooden and soft toys global firms are joining hands with domestic players for manufacturing. Sharing similar views, Amitabh Kharbanda, Promotor of Sunlord Group, said the Budget announcement for a National Action Plan for Toys, will further help the sector.
“The sector can benefit from the higher duties on its competitors. The trade agreement with the US will also help us in a huge way,” Kharbanda said.
However, he said that Indian companies should look at aggressively expanding their capacities to increase shipments.
The government’s steps, such as mandatory quality norms and an increase in customs duties, have significantly helped the domestic toy players to boost manufacturing and reduce dependence on Chinese imports.
The industry has long faced challenges in the global trade landscape, consistently being a net importer of toys for many years.
For over a decade, India relied heavily on China for around 76 per cent of its toy imports.
India’s import bill for toys from China dropped from USD 214 million in FY13 to USD 41.6 million in FY24, leading to a decline in China’s share in India’s toy imports from 94 per cent in FY13 to 64 per cent in FY24, indicating India’s competitiveness in the international toy market.