Prime Minister Narendra Modi issuing Quality Control Order (QCO) for the toy manufacturing industry is certainly a step towards encouraging the domestic toy sector. In the 68th edition of his monthly radio program, Mann Ki Baat, the Prime Minister has called upon the toy industry in the country and urged startups to team up and make toys for the entire world indigenously as “India has the talent and the ability to become a toy hub.” He also said that the new National Education Policy focuses on toys for children to nurture their creativity and innovation quotient.”
Although Chinese toys are inexpensive, they are harmful for children. Indian firms are not able to compete against cheap toys from China, despite producing the best quality of toys. 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.
So, 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.