Government likely to extend PLI scheme to toys manufacturing

5 Dec 2022 , 01:52 PM

Government is likely to extend the Production Linked Incentives (PLI) scheme to toys manufacturing. The scheme is likely to be extended to manufacturing of toys that are compliant with Bureau of Indian Standards (BIS). BIS is India’s own quality certification standards. The amount of PLI expected to be extended to toys manufacturing and some other sectors is Rs 3500 crore.

The PLI scheme aims to increase domestic manufacturing in India. It gives financial incentives of between 4% and 6% on incremental sales to companies that set their manufacturing in India. The scheme also covers domestic companies when they increase their manufacturing capacity. The objective of increasing this scheme to the toys sector is to increase domestic manufacturing of toys. Currently, a large amount and variety of toys are imported into India. Earlier, the Government increased import duty on many types of toys, in order to discourage their imports. The biggest chunk of toy imports into India come from China.