Government is going to give ₹ 3,500 crore PLI benefit to the toy industry! Investment and domestic manufacturing will increase
| फोटो-Reuters |
The central government is considering giving a production linked incentive (PLI) benefit of Rs 3,500 crore to the toy industry. However, this benefit will be available only on those toys, which comply with the rules of the Bureau of Indian Standards (BIS). The objective of this move of the Central Government is to attract domestic manufacturing, global competition and investment.
An official said that the government's implementation of quality control orders for the toy industry and increasing customs duty from 20 to 60 percent have helped in reducing low-quality imports and promoting domestic manufacturing in the country.
Benefits for toys complying with BIS regulations
The official said, “Now we are working on the extension of PLI to toys. However, this benefit will be applicable only for toys complying with BIS norms. PLI benefit can be given as per different investment slabs. It can be from Rs 25 crore to Rs 50 crore or even Rs 100-200 crore.
According to the news agency PTI, the official said that the proposal is to give incentive on the entire product and not on the parts, because the industry still needs to import some parts, which are necessary for toy manufacturing. These parts are not made in India.
Toys made in India are also making their place in the global market
Toys made in India are not only being supplied to global brands, but they are also making their place in the global market. Apart from toys, the government is also considering extending these benefits to other sectors such as cycles, footwear, some vaccine materials, shipping containers and some telecom products.
Naresh Kumar Gautam, CEO of Little Genius Toys Pvt Ltd, had earlier said that the industry is being helped by the support measures announced by the government. But this industry will get more incentive from PLI scheme and a council. There is a vast potential for employment generation in the industry.
Rs 35,000 crore PLI scheme for various sectors
The government is considering a proposal to expand the PLI scheme to the tune of Rs 35,000 crore for various sectors including toys. Inter-ministerial consultations are on on various proposals.
What is PLI scheme?
The Modi government started the PLI scheme in March 2020. Its purpose is to encourage companies on the increase in sales of products manufactured in domestic companies. The objective of the PLI scheme is to make the domestic manufacturing sector globally competitive. Apart from inviting foreign companies, its purpose is also to encourage domestic companies to set up or expand existing manufacturing units.
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