The intensifying US-China tariff war paves the way for India to become a leading toy export hub, especially to the US. Industry experts, such as Akshay Binjrajka, highlight India’s competitive advantage in meeting the demand vacated by China. They call for government support to bolster the sector and ensure quality standards while enhancing product volume from local manufacturers.

The ongoing US-China tariff war is presenting a significant opportunity for India to establish itself as a leading exporter of toys, particularly to the United States. With recent tariffs reaching as high as 145 percent on toy imports from China, industry leaders in India have identified this situation as a chance to fill the void left by reduced Chinese exports, which comprised approximately 77 percent of US imports.

According to Akshay Binjrajka, President of the Toy Association of India, the US toy market, valued at around $41.7 billion, represents a substantial opportunity for Indian manufacturers to compete effectively against Chinese products in terms of both quality and price. India’s toy exports have experienced significant growth, rising from $40 million in 2014-15 to an estimated $152 million for 2023-24.

Moreover, toy imports from China to India have drastically decreased from $235 million in FY20 to just $41 million in FY24, largely due to stringent import controls and an increase in domestic sourcing. Binjrajka noted that the Indian toy sector, which was heavily reliant on imports, is now evolving with local manufacturers scaling operations to meet both domestic demands and aspirations in the global marketplace.

Nevertheless, he cautioned that the influx of inexpensive and unregulated Chinese toys continues to threaten the domestic industry. He urged the government to enforce stricter regulations at ports and enhance the role of the Bureau of Indian Standards in filtering out substandard products.

Additionally, he has called upon West Bengal’s Chief Minister Mamata Banerjee to help develop a dedicated manufacturing cluster to boost the state’s toy industry, which possesses strategic advantages such as proximity to a seaport, good logistics, and availability of raw materials and labor. Binjrajka emphasized the sector’s potential for elevating investment and job opportunities in West Bengal, asserting, “If India becomes a global toy supplier, Bengal must lead that movement.”

In conclusion, the US-China tariff conflict has opened a remarkable opportunity for India to potentially become a major hub for toy exports. With the Indian toy market poised for growth, industry leaders emphasize the need for regulatory support to safeguard domestic manufacturers and promote local production. The commitment of state authorities could further enhance India’s position in the global toy industry.

Original Source: www.business-standard.com

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