In a bid to make domestic manufacturing globally competitive, the government is now working to extend Rs 3,500 crore worth of production-linked incentive (PLI) benefits to toys, which are compliant with the norms of the Bureau of Indian Standards (BIS).
The measures, starting from the introduction of quality control orders and raising customs duties from 20 per cent to 60 per cent, have helped in cutting down sub-standard imports and promoting domestic manufacturing in the country, an official told the news agency PTI. The PLI benefit now extended to toys will help in attracting investments and enhancing exports, the official added.
“Now we are working to extend PLI (production linked incentive) benefits for toys, but it will be given to BIS-compliant toys only. PLI benefits can be given according to different investment slabs which can range from Rs 25 crore to Rs 50 crore or Rs 100-200 crore,” the agency quoted the official as saying.
What is the production-linked incentive scheme?
Production Linked Incentive or PLI scheme is a scheme that aims to give companies incentives on incremental sales from products manufactured in domestic units. Under this scheme, foreign companies are also allowed to set up units in India, but at the same time, it encourages local companies to set up or expand existing manufacturing units and generate more employment and cut down the country’s reliance on imports from other countries.
How will the PLI scheme apply to toys?
Under the proposal, the incentives will be applicable on the full product and not to components as the industry still requires to import certain components which are key for the production of toys and are not manufactured in India.
The incentive will be applicable to BIS-compliant toys. BIS is the national standards body of India that implements conformity assessment schemes, recognise and run laboratories for conformity assessment, implement hallmarking, conduct capacity building programmes on quality assurance.
India-made toys are not only supplied to global brands but they are also creating their own place in the global markets.
Not just toys, the government is also planning to extend these benefits to other sectors such as bicycle, footwear, some vaccine materials, shipping containers, and certain telecom products.
Little Genius Toys Pvt Ltd CEO Naresh Kumar Gautam has stressed that the PLI scheme and a council would give further impetus as it holds huge potential for the creation of jobs. Inter-ministerial discussions are underway on these different proposals.
Which other sectors are taking advantage of the PLI scheme?
The government has already implemented the scheme with an outlay of about Rs 2 lakh crore for as many as 14 sectors, including automobiles and auto components, white goods, pharma, textiles, food products, high efficiency solar PV modules, advanced chemistry cell and speciality steel.
The objective of the scheme is to make domestic manufacturing globally competitive and create global champions in manufacturing.