Behavioural interventions for an Atmanirbhar toy industry3 min read 20 Aug 2020, 08:14 PM IST
Policy interventions by the government to strengthen the domestic toy industry would work best when measures to change consumer preferences are also taken.
These could be aimed at aspects such as raising consciousness about the economic benefits of buying locally-manufactured goods and reducing cost-anxieties about them.
The growth of India’s toy industry has been jeopardized for more than a decade by a deluge of Chinese imports. Recently, the government increased the import duty on toys by 200% and made toy quality certification mandatory in order to revive the indigenous industry. However, high import prices may not shift demand towards local toys unless a re-orientation of preferences of Indian consumers habituated to Chinese toys takes place. With the covid-19 crisis triggering a re-consideration of our beliefs towards globalization, never before has this re-orientation become as relevant as it has in 2020.