Tamil Nadu has launched its Toy Manufacturing Policy 2025, aiming to attract fresh investments and encourage domestic diversification in this burgeoning sector. Announced during the Tamil Nadu Investors Conclave in Madurai, the policy establishes the state as a significant hub for advanced and electromechanical toy manufacturing.
The policy classifies toy manufacturing as a sunrise sector under the Tamil Nadu Industrial Policy 2021. To qualify for special incentives, new or expanded projects must invest over ₹50 crore and create a minimum of 50 jobs. These commitments should be fulfilled within three years to maintain eligibility for benefits.
Units in eligible categories located in B and C districts that invest ₹300 crore or more can avail of the Structured Package of Assistance under TNIP 2021. The subsidy rates vary based on the district tier: 7% fixed capital subsidy for A districts over five years, 10% for B districts over ten years, and 12% for C districts over ten years. The subsidies will be disbursed annually once operations commence and commitments are met.
Companies can opt between the “Special Package of Incentives for Toy Manufacturing” or the broader “Special Incentives for Sunrise Sector,” depending on their compliance with policy criteria. This dual-option structure enables manufacturers to tailor benefits according to their scale, location, and strategic requirements.
Additional subsidies are available for training programs and designer development. Creative design studios focused on toy design or R&D can receive a 30% payroll subsidy for new hires in Tamil Nadu, capped at ₹10,000 per employee per month. The MSME department will assist in onboarding artisanal toy products onto major e-commerce platforms. Furthermore, to promote geographical indication (GI) recognition, toy clusters will receive financial assistance of up to ₹3 lakh per category for securing GI tags.
Q1. What is the Tamil Nadu Toy Manufacturing Policy 2025?
Answer: The Tamil Nadu Toy Manufacturing Policy 2025 aims to attract investments and promote job creation in the toy sector by providing special incentives for qualifying projects.
Q2. What are the investment criteria for incentives?
Answer: Projects must invest over ₹50 crore and create at least 50 jobs within a three-year period to qualify for special incentives under the policy.
Q3. How is the subsidy structured by district?
Answer: Subsidies vary: 7% for A districts over five years, 10% for B districts over ten years, and 12% for C districts over ten years, depending on investment levels.
Q4. Are there subsidies for creative design studios?
Answer: Yes, creative design studios can receive a 30% payroll subsidy for new hires in Tamil Nadu, capped at ₹10,000 per employee per month for 12 months.
Q5. What support is available for traditional toy clusters?
Answer: Traditional toy clusters can receive up to ₹3 lakh for securing geographical indication tags, along with additional support for training and designer development.
Question 1: What is the primary goal of the Tamil Nadu Toy Manufacturing Policy 2025?
A) To promote foreign investments
B) To attract new investments and create jobs
C) To develop e-commerce platforms
D) To support traditional crafts
Correct Answer: B
Question 2: What is the minimum investment required to qualify for special incentives under the policy?
A) ₹10 crore
B) ₹25 crore
C) ₹50 crore
D) ₹100 crore
Correct Answer: C
Question 3: How much subsidy can projects in C districts receive?
A) 5% over five years
B) 10% over ten years
C) 12% over ten years
D) 15% over ten years
Correct Answer: C
Question 4: What is the subsidy rate for creative design studios hiring new employees?
A) 20% for six months
B) 25% for one year
C) 30% for twelve months
D) 35% for two years
Correct Answer: C
Question 5: What type of assistance is provided for securing geographical indication tags?
A) Up to ₹1 lakh per category
B) Up to ₹2 lakh per category
C) Up to ₹3 lakh per category
D) Up to ₹5 lakh per category
Correct Answer: C
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