No New PLI Sops on Cards for Now, Says DPIIT Secy
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The Centre will continue to support toy manufacturing in the country through non-production linked incentive (PLI) measures such as import duties and quality control orders (QCO), Rajesh Kumar Singh, secretary, Department for Promotion of Industry and Internal Trade (DPIIT), said on Thursday. The proposal for a PLI scheme on toys has been put on hold and a third-party audit of the white goods PLI scheme will be conducted, he said.

Responding to a query on the decision to put the toys PLI proposal on hold, he said, "Currently we are focused on getting these 14 PLI schemes up and running in a good way. For the time being, new PLI schemes are not being considered and we will focus on ensuring that these existing schemes get implemented well. Thereafter, we'll see."


The Centre is running PLI programmes worth ₹1.97 lakh crore for 14 sectors in which India aims for self-reliance. These sectors include mobile manufacturing and specified electronic components, critical key starting materials, drug intermediaries and active pharmaceutical ingredients, speciality steel, automobiles and auto components.


Regarding the third-party audit of the white goods PLI scheme, a senior government official said on the condition of anonymity, "The Arun Jaitley National Institute of Financial Management will conduct the audit. They will be looking at the PLI scheme from all angles to assess whether the stated objective has been achieved. We want to understand if there is a need for course correction." 

An official statement said India's toy industry reported a 52% decline in imports and 239% increase in exports in 2022-23 compared with 2014-15. It was an outcome of measures such as higher customs and import duties. Basic customs duty on toys was increased to 60% from 20% in February 2020, and subsequently to 70% in March 2023.

Another step that boosted domestic industry was the mandatory sample testing of each import consignment to curb the proliferation of sub-standards toys, said an official statement. A QCO for toys was also issued in 2020 and enforced from January 1, 2021.These observations have been highlighted in a case study by the Indian Institute of Management Lucknow. Toy manufacturing units in the country have doubled between 2014 and 2020, according to the study. Commenting on the strategy behind import duties, Singh said a minimal level of protection must be given to the local industry to ensure it does not face cost disabilities but such support cannot continue for eternity. "Basic customs duty will have to come down eventually. We cannot continue with the infant industry argument forever," he said.

 

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