Thursday, 11 Sep, 2025
India’s toy market, though relatively modest in comparison, was valued at around US$ 1.5 billion in 2022. Source: Money Control
Goyal credited the implementation of the Quality Control Order (QCO) for helping position India as a quality-conscious nation, enabling local manufacturers to meet international standards.
India’s toy industry, once reliant on imports, is rapidly transforming into a global exporter, now reaching markets in over 150 countries, according to Union Commerce and Industry Minister Piyush Goyal. Speaking at the 16th Toy Biz International B2B Expo 2025 in the capital, the Minister hailed the sector’s turnaround as a “remarkable transformation” driven by a combination of targeted policy interventions, quality control measures, and robust domestic manufacturing. Goyal credited the implementation of the Quality Control Order (QCO) for helping position India as a quality-conscious nation, enabling local manufacturers to meet international standards. “Through consistent efforts, India is now producing toys not only for its own children but for the world,” he said.
India’s vast population of 1.4 billion offers a massive domestic market, which the Minister said provides a natural springboard for scaling up production and achieving global cost competitiveness. “The strength of the domestic market supports expansion and creates a foundation for exports,” Goyal noted. Emphasizing the importance of design, branding, and packaging, Goyal urged the industry to enhance its global appeal by focusing on these three pillars. “Indian toys must look as good as they perform, good design and packaging will make our toys stand out internationally,” he said.
The Minister also highlighted the support extended to toy startups through the Pradhan Mantri Mudra Yojana, now extended to 20 years, which offers collateral-free credit to small and micro enterprises. Additionally, the Ministry of MSME has aided the development of 18 toy manufacturing clusters to bolster local production.
Looking ahead, Goyal announced that the government is in the process of finalizing a new promotional scheme for the toy sector. The initiative is expected to focus on enhancing product design capabilities, improving packaging, ensuring quality manufacturing, and supporting branding efforts to help Indian toys compete at a global level.
China continues to dominate the global toy industry, accounting for nearly 70 percent of total production. Its toy exports have seen a dramatic surge, from US$ 10 billion in 2003, representing 30 percent of global exports, to US$ 83.3 billion in 2022, capturing a commanding 65 percent share. Other major toy exporters in 2022 included the United States (US$ 4.6 billion), Germany (US$ 4.5 billion), and the Czech Republic (US$ 3.7 billion).
India’s toy market, though relatively modest in comparison, was valued at around US$ 1.5 billion in 2022. However, it is on a strong growth trajectory, expected to double to US$ 3 billion by 2028, registering a compound annual growth rate (CAGR) of 12 percent between 2023 and 2028. Key segments in the Indian market include plastic toys, construction sets, models, and toys for toddlers. Additionally, labour-intensive categories such as dolls, soft toys, infant toys, and board games present significant potential for domestic manufacturing.
Source: Exim Bank, India
To boost this emerging sector, the Indian government has launched a series of policy measures. These include the National Toy Action Plan, aimed at transforming India into a global manufacturing hub for toys; the Scheme of Funds for Regeneration of Traditional Industries (SFURTI), which supports traditional toy clusters through the creation of shared facilities; and mandatory quality certifications. Other steps include a steep increase in import duties on toys and targeted efforts to promote toy exports under the ‘District as Export Hubs’ initiative.
India’s toy exports have grown considerably from US$ 88.6 million in 2013 to US$ 347 million in 2022, reflecting an average annual growth rate of 17.1 percent. Yet, the country’s share in global toy exports remains minuscule at just 0.3 percent, indicating considerable room for expansion. Meanwhile, toy imports have dropped significantly, from US$ 327.5 million in 2013 to US$ 137.9 million in 2022. This decline is partly attributed to the hike in Basic Customs Duty (BCD) on toy imports under HS code 9503 from 20 percent to 60 percent in 2020, later adjusted to 70 percent in 2023, making imports less competitive and boosting domestic production.
With sustained emphasis on innovation, quality, and market expansion, the Minister expressed optimism that India’s toy industry is on track to emerge as a formidable global player in the years to come.
