Indian Toys are a global choice

Since 2018-19, India’s Toy exports have turned around and net exports is positive. Between 2018-19 and 2021-22, Toy exports reportedly increased from $109 million to $177 million and the imports declined from $371 million to $110 million. But, what could be the reason behind this success? One reason is likely the tripling of import tariffs from 20% to 60% and the imposition of non tariff barriers. Another reason is the Make in India policy. Bigger question is did the abolition of the reservation policy for labour intensive products in 1997 help? Research reveals that dereservation of toy manufacturer policy did lead to the entry of new firms in registered manufacturing and output expansion, but for a limited period only. However, the unorganised sector had and still continues to play a bigger share in output and employment in toy manufacturing. The big learning lesson from this is promoting labour intensive industrialisation, such as toy manufacturing, can make a big difference to the Economy. In an era of AI and Automation, this is indeed heartening to know.

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