(MENAFN- KNN India) New Delhi, Oct 27 (KNN) The Indian government is finalizing a massive Rs 13,000-crore incentive scheme aimed at transforming India into a global hub for toy manufacturing.

The initiative, led by the Department for Promotion of Industry and Internal Trade (DPIIT), seeks to boost domestic production, reduce import dependence, and create large-scale employment in the toy industry.

Once approved by the Cabinet, the scheme will offer multiple benefits to toy manufacturers. These include Turnover-Linked Incentives (TLI) to reward higher sales, Localisation-Linked Incentives (LLI) to encourage domestic sourcing of materials, and Employment-Linked Incentives (ELI) to promote job creation.

The move aligns with the“National Action Plan for Toys” announced in the Union Budget 2025, which focuses on developing toy manufacturing clusters, improving product quality, and encouraging innovation.

The plan also promotes the“Made in India” initiative by supporting skill development and sustainable toy design.

India's toy sector has been undergoing major reforms in recent years. The government has raised import duties on toy components, enforced stricter quality standards, and supported new toy clusters in states like Uttar Pradesh, Karnataka, and Tamil Nadu.

These measures have significantly reduced the import of low-cost Chinese toys and encouraged domestic players to scale up production.

If implemented effectively, the incentive scheme could help Indian manufacturers tap into the rapidly growing global toy market, create thousands of jobs, and position India as a competitive alternative to China in the sector.

However, industry experts note that success will depend on efficient implementation and the establishment of strong raw material and supply chain networks.

(KNN Bureau)

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