Impact of Globalisation on Indian Toy Making Industry

Globalisation has brought about a significant change in the Indian economy since the 1990s. It has opened up opportunities for Indian industries to expand their markets globally. However, some industries have been adversely affected by globalisation, one of them being the Indian toy making industry.

1. Introduction

The Indian toy making industry is one of the oldest industries in the country. It has a rich cultural heritage and has been an integral part of Indian society. However, with the advent of globalisation, the industry has been hit hard.

2. Impact of Globalisation

a) Competition

With globalisation, foreign toy manufacturers have entered the Indian market, which has led to stiff competition. These foreign companies have access to better technology, economies of scale, and modern manufacturing techniques, which has made it difficult for Indian toy manufacturers to compete.

b) Cheaper Imports

Foreign toy manufacturers can produce toys at a lower cost due to economies of scale and cheaper labour. This has led to the import of cheaper toys, which has affected the sales of Indian toys.

c) Lack of Innovation

Indian toy manufacturers are unable to match the innovation and creativity of foreign toy manufacturers. This has made it difficult for them to come up with new and innovative products that can capture the market.

3. Resultant Effects

a) Closure of Units

Due to the above-mentioned reasons, many small and medium-sized toy manufacturing units have closed down, leading to job losses.

b) Shift to Other Industries

Many toy makers have shifted to other industries, as they are unable to sustain their businesses due to the competition from foreign manufacturers.

c) Decrease in Exports

The Indian toy making industry was once a major exporter of toys to many countries. However, due to the competition from foreign manufacturers, the exports have decreased significantly.

4. Conclusion

In conclusion, globalisation has had a profound impact on the Indian toy making industry. The competition from foreign manufacturers has made it difficult for Indian toy makers to sustain their businesses. The government needs to take measures to support the industry and provide incentives to encourage innovation and creativity.