Indian toy industry to get a big push after PM Narendra Modi's digital strike against Chinese apps

New Delhi: After banning 200 Chinese mobile apps, Prime Minister Narendra Modi has started taking steps to encourage the domestic toy industry by issuing Quality Control Order (QCO). The government has issued instructions for cluster development in various states and has also started providing the necessary environment to help this industry.

Recently, the Prime Minister referred to strengthening of the Indian toy industry in his Mann Ki Baat programmee, giving a clear indication to break the monopoly of Chinese industries in the domestic toy market. In the last 25 years, Chinese firms have marginalized the Indian toy industry. 

The Sino-India standoff at Doklam and then the violent clashes between Indian and Chinese troops at the Galwan valley in the Eastern Ladakh along the Line of Actual Control (LAC) has forced the government to give a push to the marginalized Indian toy industry. 

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The government has chalked out a plan to look into the issues plaguing the domestic toy industry.

Although Chinese toys are cheap due to poor quality, they are harmful to children. Indian firms are not able to compete against cheap toys from China, despite producing the best quality of toys. We need to understand the reason why Chinese toys are so cheap. 

1. The toy industry in China enjoys government protection, and it also avails of several facilities.

2. The toy industry in China also receives subsidies on the purchase of land to machines from the government.

3. The Chinese government also provides subsidies and incentives to firms exporting toys.

4. For setting up the toy industry, the Chinese companies are also extended loan facilities at cheap interest rates.

5. Single Window Clearance System in China facilitates companies to easily set up industries.

Apart from this, here are other problems that the Indian toy industry faces in comparison to China: 

China's government provides all assistance to the toy industry on its land. In Chinese villages, local people are employed in the toy industry. The Chinese government has evolved a system of dialogue between the toy merchants and the needy people in villages. Whereas in India, this system is yet to evolve, and there is no common platform on which traders and labourers can approach and have trust.

On the one hand, people in China get employment in the toy-making units in their own villages. This provides cheap labour for traders. The Chinese government also gives hire and fire options to traders, who therefore bear no loop loss.

Indian traders, however, lack such facilities. Despite having innovative ideas, they have to run from pillar to post to even get the machines required for establishing toy units.

The government, however, has decided to change the existing conditions. It will provide space for a toy cluster in the Delhi-Mumbai Industrial Corridor where more than 200 factories can be set up.

These toy clusters will also be created in different parts of the country, including Chennai and Pune. Currently, the work is underway on 5 such clusters.

The Yogi government in Uttar Pradesh has allotted 100 acres of land for a toy city. So far, 90 traders have submitted their applications to open new factories in this city. In Uttar Pradesh alone, the toy industry has decided to take this sector forward by investing Rs 20,000 crores.