India strengthens toy and footwear industry: New measures for global success

India is increasingly focusing on promoting its toy and shoe industries to position itself as a global leader in these sectors. Recently, Commerce and Industry Minister Piyush Goyal highlighted the success of state interventions, which have led to a significant reduction in toy imports and a remarkable increase in exports. With new political measures, the domestic production is expected to be further boosted, and the competitiveness of the shoe industry strengthened.

Successes in the toy industry

India's toy industry has undergone an impressive transformation in recent years. Thanks to targeted government interventions, toy imports have dropped by 50%, while exports have risen to 3.5 times the level of five years ago. This development highlights the effectiveness of the measures taken and the potential of domestic manufacturers to deliver high-quality products for the global market.

New political measures to promote the toy and shoe industry

To continue this positive trend, the Indian government plans to introduce further political measures. The goal is to strengthen domestic production in both the toy and shoe industries and establish India as a global hub for these sectors. These measures are intended to not only increase production capacity but also promote innovation and improve product quality.

Production Linked Incentive (PLI) Program and Semicon India Program

A central part of India's industrial policy is the Production Linked Incentive (PLI) program. With a budget of $23.02 billion, this program aims to promote investment in key industries such as electric mobility, auto parts, semiconductors, and textiles. The PLI program offers financial incentives for companies operating in these sectors, contributing to job creation and economic growth. By August 2024, the program had attracted investments of $17 billion, leading to a production increase of approximately 11 trillion rupees (about $131.6 billion) and nearly a million new jobs.

Additionally, the Semicon India Mission was launched with a budget of $8.52 billion to promote semiconductor and display manufacturing in the country. This program provides financial support for companies investing in semiconductor production, display manufacturing, and the design ecosystem. The goal is to build a robust and sustainable semiconductor ecosystem in India and reduce dependence on imports.

Focus on the shoe industry

The shoe industry plays a significant role in India's economy. India is one of the world's largest producers of leather shoes, supplying numerous international markets. However, working conditions in this sector are often criticized. Studies have shown that many factories lack proper labor rights and safety standards. The government plans to not only increase production capacity but also improve working conditions and promote sustainable practices in leather and shoe production.

Opportunities for investors in BRICS countries

Investing in the BRICS countries (Brazil, Russia, India, China, and South Africa) offers a variety of advantages. These countries are characterized by dynamic economic growth, a growing middle class, and extensive natural resources. India, for example, has established itself as an attractive location for various industries through targeted political measures. Programs such as the PLI and the Semicon India Mission create incentives for investors and promote the development of promising sectors. By investing in these markets, investors can benefit from high growth rates and diversified portfolios. However, it is important to carefully analyze the specific market conditions and potential risks. The free “BRICS.Investments Report” provides valuable insights and keeps investors up to date on the biggest trade opportunities.