The Gujarat Industrial Development Corporation (GIDC) is already in the process of conducting a feasibility study for such a project. (Representative image)
India’s largest clock manufacturing cluster in and around Morbi wants the Gujarat government to pick the town for its proposed toy manufacturing park, in line with the central government’s Atmanirbhar Bharat initiative.
Over the past four decades, Morbi in Saurashtra has emerged as Gujarat’s leading hub for clocks, electronic and electric items. According to local clock manufacturers, if the toy park were developed near Morbi with certain tax benefits, they have the capability to manufacture toys and compete with imports from China without compromising quality.
Apart from Gujarat, states like Uttar Pradesh, Karnataka and Rajasthan are mulling dedicated toy parks. The Gujarat Industrial Development Corporation (GIDC) is already in the process of conducting a feasibility study for such a project.
“At present, almost 80% toys in India are being imported from China. If local players are given encouragement through the development of a dedicated park, Morbi has the capability to reach a turnover of Rs 5,000 crore within a year, along with creating employment opportunities for at least 50,000 people,” Jaysukh Patel, managing director of Ajanta-Oreva Group, said.
Patel said they would also require support from the central government to curb the illegal practice of “under invoicing” in the import of toys from China to dodge import duty. Despite the increase in duty on toys from 20% to 60%, this illegal practice has killed India’s toy industry, he claimed.
Around 200-odd clock manufacturing units in Morbi have ready infrastructure for the four main processes required in toy making. They have the capability for plastic moulding, stamping, electronic and electric components apart from aluminium dye-casting.
Shashank Dangee, president of the Morbi Clock Manufacturers Association, said the recession-hit clock industry in Morbi can easily diversify into toy making if the government provides them incentives and protects them from cheap and illegal imports from China. Except for four to five large-scale units, most clock and parts makers in the cluster are MSMEs, Dangee said.
Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.
Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.
