MC EXCLUSIVE Rs 13,000-crore incentive scheme likely for toy sector soon

Rs 13,000-crore incentive scheme likely for toy sector soon

India’s toy industry is set for a major push, with the government finalising a massive Rs 13,100-crore incentive scheme for the sector. According to highly placed sources, the Department for Promotion of Industry and Internal Trade (DPIIT) has worked out the details of the scheme, which will be sent to the Union Cabinet for final approval shortly.

The scheme proposes direct incentives linked to turnover and sales of toy manufacturers. In addition, a unique feature will allow incentives for imports of toy-making components, where manufacturers could receive a partial refund of customs duty to encourage domestic value addition.

This move comes in the backdrop of Finance Minister Nirmala Sitharaman’s Budget 2025 announcement on February 1, where she had said: “Building on the National Action Plan for Toys, we will implement a scheme to make India a global hub for toys. The scheme will focus on development of clusters, skills, and a manufacturing ecosystem that will create high-quality, unique, innovative, and sustainable toys that will represent the ‘Made in India’ brand.” In the same budget, the government also reduced basic customs duty on components used in electronic toys from 70% to 20%, further signaling its intent to promote domestic manufacturing of smart and electronic toys.

If approved, the Rs 13,100-crore scheme will mark the first large-scale incentive programme for India’s toy sector, which has already seen policy support through import duty hikes, quality control measures, and dedicated toy clusters in states like Uttar Pradesh, Karnataka, and Tamil Nadu.