New Delhi, Dec 5 (KNN) The discussions for the launch of Rs 3,500 crore worth production-linked incentive (PLI) scheme for both traditional and mechanical toys has reached the inter-ministerial consultation stage, reported Business Standard.

It will be followed by PLI schemes for bicycles and footwear, a government official told Business Standard as discussions for PLI for toys are at an advanced stage.

However, the incentives will be for toy making and not on toy components.  

“The components of toys are not available locally. So initially you have to import those components. There is no choice. There are some electronics components which are not available in India at all. The material for the fabric of the soft toys is also not available here,” the official said.  

“We never realised the toy industry is so important. We are focusing only on those sectors where there is not enough domestic manufacturing capacity, where there is a lot of imports and where there is potential for exports and there is scope for enhancing exports. In those sectors, PLIs could be considered,” he said.  

The official claimed the toy sector was a success story with toy cities coming up in Jewar and Greater Noida in Uttar Pradesh.

In the past three years, toy imports dropped 70 per cent from USD 371 million in FY19 to USD 110 million in FY22.  (KNN Bureau)