Trend of production and productivity of toys industry in India and way ahead

Term Paper , 2020 , 19 Pages , Grade: A

Business economics - Supply, Production, Logistics

This paper analyses the trends of production of the toy industry in India. Today India is dealing with the problem where it is more dependent upon other countries to fulfil its requirements by importing goods. One of such industries is toys industry. This industry may always remind about a child but the significance of this industry is not something trivial. India consists of a very big market for toys because of its humongous population. As India is a developing country so, it is clear that the standard of living will rise in India and this will give a boost to the toy’s market in India. The paradox here is that, India has one of the biggest market of toys but India’s toys industry is struggling a lot. The government of India is planning to boost this industry.

This will fetch two desirable result for our nation. Firstly, it will strengthen the vision of ‘vocal for local’. Secondly, it will also culminate the attachment towards the Indian culture and tradition in the heart of an Indian child. The government is planning so many things to boost this industry. Prime Minister, in the monthly edition to his ‘Man ki Baat’ has emphasised on the importance of this industry in achieving self-reliance. He had also emphasised that in the contemporary times china is dominating toy industries in whole of the world and even in a humongous market like India . PM has also urged entrepreneurs to innovate in this sector and develop indigenous toy industry.

CONTENTS

1. INTRODUCTION

2. TREND OF PRODUCTION OF TOYS IN INDIA
2.1 Ways to boost the production

3.SIGNIFICANCE OF PRODUCTION OF TOYS IN INDIA
3.1 India’s dependence on other countries for toys

4. FUTURE PLANS FOR THE REJUVENATION OF THE INDUSTRY
4.1 Obstacles for the Industry
4.2 What next

5. HISTORY OF THE INDUSTRY
5.1 Wooden rattles
5.2 Chaturanga
5.3 Chapisi/Chaupar
5.4 Puppets
5.5 Dolls

6. CRITICAL ANALYSIS
6.1 Suggested ways to establish the industry

BIBLIOGRAPHY

1. INTRODUCTION

Today India is dealing with the problem where it is more dependent upon other countries to fulfil its requirements by importing goods. One of such industries is toys industry. This industry may always remind about a child but the significance of this industry is not something trivial. India consists of a very big market for toys because of its humongous population. As India is a developing country so, it is clear that the standard of living will rise in India and this will give a boost to the toy’s market in India. The paradox here is that, India has one of the biggest market of toys but India’s toys industry is struggling a lot.

The government of India is planning to boost this industry. This will fetch two desirable result for our nation. Firstly, it will strengthen the vision of ‘vocal for local’. Secondly, it will also culminate the attachment towards the Indian culture and tradition in the heart of an Indian child. The government is planning so many things to boost this industry. Prime Minister, in the monthly edition to his ‘Man ki Baat’ has emphasised on the importance of this industry in achieving self-reliance. He had also emphasised that in the contemporary times china is dominating toy industries in whole of the world and even in a humongous market like India¹. PM has also urged entrepreneurs to innovate in this sector and develop indigenous toy industry.

There are basically two types of toy industry in India namely, traditional toy industry and formal toy industry.² The problems of both the sectors are different along with other classification as well. The traditional toy industry dates back to ancient times. The traditional toys industry indulges in manufacturing toys of Clay, Wood, Terracotta, Clothes, etc³. In rural areas of Indian society, the significance and scope of growth for this industry is so optimistic as the toys that are being produced by this industry is cheap, which is suitable for the people with less income and other point is that, the toys produced by this industry are also rough and tough which lasts too long so this again is something desirable for a person with less income. The toys made by these industries can surely not that shiny or finished as compared to the one produced by formal industry but they definitely have the same ability to develop motor and cognitive skills as the toys of formal industries have⁴. They are also made up of natural dyes and does not consists any small parts so there is less risk on the child.

2. TREND OF PRODUCTION OF TOYS IN INDIA

There is a weird paradox in Indian toys industry as in the last five years the toys industry increased with a double-digit rate but 40% of the manufacturing units have been closed⁵. This effect can be explained by the term of ‘Dragon effect’ coined by ASSOCHAM⁶. This refers to the flooding of the market by the Chinese goods. The toys in Indian market are mostly Chinese toys even 80%-90% of market is flooded with the toys produced by the Chinese industry⁷.

In the earlier times, this industry does not get enough attention. This always seems as a child play but the significance of this industry is so much. Never the needed emphasis was given for the development of this industry. This became the reason behind the under development of this industry. This was the reason behind our reliance on other countries for fulfilment of our requirement of toys.

The trend of revenue collected by the production of toy industry is as follows-⁸ Abbildung in dieser Leseprobe nicht enthalten

If the trend is seen it is clear that the production of toys in India is increasing by almost a constant rate but the production in the last year is somewhat a little accelerated. The Indian toys market consists of mostly imported toys mainly from China, Sri lanka, etc. so we need to boost the production at a very high rate. If the market of China is seen it is apparent that it has become a huge exporter only because of the support by their indigenous market. The Chinese toy industry is supported by the resources. In India we too have a large market, we are the third largest market in the world⁹ so, what we need is just the resources. The enough resources to our toys industry can boost the capability of our production as in the terms of market we are already strengthened.

The production of toys in India is mainly dealing with the different kind of toys such as wheeled toys, dolls, video game consoles, sports, etc. The largest demand is for wheeled toys followed by Dolls. So, we must also keep this trend in mind before making our toys industry strengthened.

2.1 Ways to boost the production

Before giving any idea about how we can strengthen our toy industry this should be discussed that how our counterpart has gained monopoly in the market. As it can be seen that about 90% of the toy market is flooded with the Chinese toys. Here it is worthful to discuss the point that how china dominated the toys market with a crowned monopoly.

2.1.1 Understanding China’s dominance

China gained the monopoly in the global toys market only because of its domestic support; China implemented one child policy in 1975¹⁰. And after this policy the priorities of Chinese parents became a bit different. When there was more than one child of a parent in china, the parents were more determined to fulfil the necessary requirements of the child but when the parent had only one child, it deviated parent’s attention from necessities to luxuries. Now, the parents were more determined to take care of their single child with all the efforts that they can do so as a result now the parents buys more toys for their only child. This boosted the market of toys in china. Because of this boost the Chinese toymakers started to doing innovations in the field of toymaking. Now, there comes the era of electronic toys. The electronic toy was a new concept in whole of the world and it made china a large exporter of toys product to different parts of the Globe.

So, due to the accessibility of China to the different part of the world, china began to export some more goods to different part of the world which causes the trade of china to take a huge spike. So, if Indian toy Industry is also given enough resources then it would not be difficult for us dominate the international toys market as we have the same ability of china. We have the strength of population that too we have 20% population below 12 years. So, we can strengthen the industry by-

I. Imposing more custom duties on exports from other countries;
II. As Chinese products lack qualities so; we can improve the qualities of the toys that are indigenously produced;
III. Checking the quality of the products that are being imported.

3.SIGNIFICANCE OF PRODUCTION OF TOYS IN INDIA

We are highly dependent upon other countries for toys in India. We are dependent upon mostly Chinese toys. We are talking about self-reliance in every sector but there is a very significant sector that is toys industry.

Indian toys market is estimated to increase dramatically, the reasons behind this anticipation are-

I. The standard of living in India is estimated to grow;
II. Indian parents spends Rs. 250-300 averagely on toys which is to further increase¹¹ ;
III. 20% of the population in India is of 1-12 years¹².

So, these factors say that Indian toys market will grow dramatically. And if the Indian toys market will grow at this rate then it is a golden opportunity for Indian toy manufacturing industry, as if we have that much huge market then it is not a wise step to let other countries rule this market.

In the contemporary world, the concern regarding organic goods is increasing tremendously and the toys made by the traditional toys industry will become a point of attraction for European market and American market. So again the indigenous traditional toys industry will have a chance to establish itself at a global level.

We have the opportunity; it is the chance to strengthen our toys industry and make it as strengthened to be a global competitor. If Indian toy industry manages to get hold of Indian toy market than because of the large share of our population and above mentioned all the factors it would be easier for the industry to compete in the global market. As our market size is so large so, it can contribute a lot for the national GDP.

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¹ ——-, ‘PM Modi bats for local toy industry, urges people to support’ (2020) timesofindia.com, available at https://timesofindia.indiatimes.com/business/india-business/pm-modi-bats-for-local-toy-industry-urges-people-to-support-desi-apps/articleshow/77841819.cms (last accessed 6 December 2020)

² ECONOMIC SERVICES GROUP NATIONAL PRODUCTIVITY COUNCIL NEW DELHI, “Research Study On Productivity & Competitiveness Of Toy Manufacturing Sector In India” September 2017, p.6 available at file:///C:/Users/gaura/OneDrive/Desktop/1st%20semester/Projects/pol%20science/Research-Report-Toy-Industry-ES-HQ%20(1).pdf (last accessed 7 December 2020)

³ Id.

⁴ ——-, ‘Indian toy story: Let the games begin’ (2020) indiaincgroup.com, available at https://indiaincgroup.com/indian-toy-story-let-the-games-begin/#:~:text=The%20rich%20heritage%20of%20Indian,under%20the%20age%20of%2025.

⁵ ECONOMIC SERVICES GROUP NATIONAL PRODUCTIVITY COUNCIL NEW DELHI 5, “Research Study On Productivity & Competitiveness Of Toy Manufacturing Sector In India” September 2017, p.6 available at file:///C:/Users/gaura/OneDrive/Desktop/1st%20semester/Projects/pol%20science/Research-Report-Toy-Industry-ES-HQ%20(1).pdf (last accessed 7 December 2020)

⁶ Id.

⁷ Id.

⁸ Id.

⁹ ECONOMIC SERVICES GROUP NATIONAL PRODUCTIVITY COUNCIL NEW DELHI, “Research Study On Productivity & Competitiveness Of Toy Manufacturing Sector In India” September 2017, p.6 available at file:///C:/Users/gaura/OneDrive/Desktop/1st%20semester/Projects/pol%20science/Research-Report-Toy-Industry-ES-HQ%20(1).pdf (last accessed 7 December 2020)

¹⁰ Id.

¹¹ ——-, ‘Indian toy story: Let the games begin’ (2020) indiaincgroup.com, available at https://indiaincgroup.com/indian-toy-story-let-the-games-begin/#:~:text=The%20rich%20heritage%20of%20Indian,under%20the%20age%20of%2025

¹² Id.

• College: Rajiv Gandhi University
• Course: B.A LL.B.
• Grade: A
• Author: Avinash Kumar (Author)
• Publication Year: 2020
• Pages: 19
• Catalog Number: V1003659
• ISBN (eBook): 9783346383631
• ISBN (Book): 9783346383648
• Language: English
• Tags: toy industry, toys, indian toys, toys in india