The industry department is in the advanced stage of inter-ministerial consultation for launching a production-linked incentive (PLI) scheme for both traditional and mechanical toys worth Rs 3,500 crore, followed by PLI schemes for bicycles and footwear.
A government official said, “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 investment slab is said to be kept as low as Rs 5 crore for encouraging more micro, small, and medium enterprises (MSMEs) to take advantage of the scheme. However, the incentives will be for toy making and not on toy components.
The official added, “The components of toys are not available locally. So initially you have to import those components. There is no choice. There are some electronics components which are not available in India at all. The material for the fabric of the soft toys is also not available here.”
So far, the government has announced an outlay of Rs 1.97 trillion for the PLI schemes across 14 key sectors, to create national manufacturing champions and to create 6 million new jobs, during the next five years.
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