Toy industry ready to take advantage of high US tariffs on competitors like China & Vietnam

New Delhi: The Indian toy industry is ready to take advantage of the high tariffs imposed by the US on competitors such as China and Vietnam, and the domestic players have already begun work on expanding capacity and forming joint ventures with global firms, exporters said on Sunday.

They added that India has emerged as a winner in the recent US tariff hikes, as the exporters are better positioned to absorb the impact compared to competitor countries that are facing higher import duties in America.

While the US has imposed an additional 26 per cent import duty on India, its competitor Vietnam is facing 46 per cent tariff, Bangladesh 37 per cent, China 54 per cent, Indonesia 32 per cent, and Thailand 36 per cent.

“Huge opportunities are there for our exporters now. Vietnam’s exports are about $6 billion and China’s are $80 billion. Now their items will face higher duties in the US than that of Indian toys. All big toy firms are exploring opportunities to set up plants in India,” the CEO of Playgro Toys India, Manu Gupta, said.

India’s toy exports are hovering in the range of $326 million to $348 million for the last three years, according to the industry.

He said that early conclusion of a bilateral trade agreement with the US will also help Indian toy players to increase shipments. Gupta said that along with the centre, now states too are making sector specific policies to attract investments.

“States like Madhya Pradesh, Karnataka, Odisha, Haryana and Bihar are coming forward with their policies for us,” he said adding top wooden and soft toys global firms are joining hands with domestic players for manufacturing.

Sharing similar views, Amitabh Kharbanda, Promotor of Sunlord Group, said the Budget announcement for a National Action Plan for Toys, will further help the sector.

“The sector can benefit from the higher duties on its competitors. The trade agreement with the US will also help us in a huge way,” Kharbanda said.

However, he said that Indian companies should look at aggressively expanding their capacities to increase shipments.

The government’s steps, such as mandatory quality norms and an increase in customs duties, have significantly helped the domestic toy players to boost manufacturing and reduce dependence on Chinese imports.