Indian toy market could double to $ 2 billion by 2025: report
NEW DELHI : India’s toy market, currently estimated at $ 1 billion, has the potential to double by 2025, according to a FICCI-KPMG report.
The report “State of play: India’s toy story – Unboxing fun and beyond” indicates that India could also aim for a 2% share of world exports by 2025. There is high growth potential for India in the exports of plastic toys and board games to US, EU and Middle East among other markets.
The report presents a detailed overview of the Indian toy industry by focusing on both demand and supply measures needed to make India a global toy manufacturing hub.
As globalization has expanded market access for raw materials and finished products, the covid-19 pandemic has exposed the vulnerabilities of global businesses that source from a single source market, he said. . The established need to reduce supply chain risk has given India another opportunity to embrace its heritage and inherent skills and technology advantages to become a global player in the industry.
âToys are an integral part of Indian culture and heritage. While the desire to play is more constant today than ever before, the global toy industry has come a long way. The nature and techniques of play are changing rapidly, keeping pace with technological change and market demands. Toy categories such as dolls, soft toys, babies and infants and preschoolers are labor intensive with good potential for manufacturing capabilities in India and easy export market. to penetrate, with the exception of items that require decorations and similar value additions where productivity levels are significantly lower (30-40%) than in China, âthe report said.
The report observed that digital and technological advancements in toys are driving an increasing application of artificial intelligence, especially in STEM toys. âIndia has limited manufacturing capacity for battery-powered, electronic and tech toys, but can be expanded in the medium to long term. The labor-intensive sub-segments constituting 50-60% of the toy market can expand immediately in India, giving a boost to the indigenization of these segments, which could therefore give a huge boost to the toy market. job creation. There is also significant scope for gross value added growth with the inclusion of unregistered units in India, âhe said.
As states across the country lead initiatives to nurture toy-making ecosystems as well as develop and market new toy clusters, heralding a major shift in domestic toy-making, the desired model for India is pushing global and domestic players to build end-to-end integrated manufacturing facilities, according to the report.
The report suggested a phased manufacturing program to make India self-sufficient; strategic links with global players to take advantage of scientific, technological, technical, artistic and mathematical toys; creation and implementation of a dedicated toy policy; the establishment of a nodal agency such as the âNational Creative Hub (C-Hub)â; and increased testing and certification facilities.
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