In a heartwarming twist, the Indian toy industry has embarked on a global journey, witnessing an astounding sixfold increase in toy exports during the 2021-22 period compared to 2013-14. This surge in exports not only reflects the prowess of Indian toy manufacturers but also signifies the recognition of toys as a champion sector with immense export potential.

A Growing Industry

The Indian toy industry is on a rapid growth trajectory, and the numbers speak for themselves. Projections indicate that it is poised to reach a substantial $3 billion by 2028, fueled by a robust compound annual growth rate (CAGR) of 12% between 2022 and 2028. This impressive growth showcases the dynamic nature of the industry and its growing significance on the global stage.

Expanding Global Footprint

The Indian toy industry is spreading its wings globally, with a notable uptick in high-value exports to Middle East and African countries. The recent increase in import duties on toys from 60% to 70% in the 2023 budget underscores India's commitment to promoting domestic toy manufacturing and curbing imports. Additionally, the implementation of the Toys Quality Control Order (QCO) in 2021 has ushered in enhanced standardization in toy production and import, focusing on ensuring product safety.

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Domestic Strength

While the global stage beckons, the domestic market for toys in India remains robust, currently estimated at a value of $1.5 billion. Notably, labor-intensive toy categories such as dolls, soft toys, and board games are witnessing significant manufacturing potential within India. This is due to inherent cost competitiveness and the burgeoning demand for these cherished playthings.

Small & Medium-Sized Dominance

The landscape of the Indian toy industry is predominantly populated by small and medium-sized manufacturers who contribute significantly to its vibrancy and diversity. These manufacturers play a crucial role in catering to the varied demands of the market and shaping the industry's future.

Government's 'Vocal for Local' Initiative

The Government of India is leaving no stone unturned in bolstering the 'Vocal for Local' initiative in the toy sector. The National Action Plan for Toys (NAPT), a collaborative effort involving over 20 Ministries/Departments, is poised to provide comprehensive support. This initiative aims to nurture and promote indigenous toy manufacturing, ultimately empowering Indian toy manufacturers on both domestic and international fronts.



Raw Material Advantage

India boasts a strategic advantage when it comes to raw materials. As the world's second-largest producer of polyester and related fibers, with an 8% global share for plush toys, India has access to a wide range of materials such as plastics, paperboards, and textiles at competitive prices. This advantage translates into increased cost efficiency for toy manufacturers.

State-Level Incentives

Multiple states in India have rolled out enticing incentives for toy manufacturers, including subsidies that cover nearly 30% of the manufacturing costs. These incentives are designed to encourage the establishment of toy manufacturing units, further propelling the industry's growth.

Cluster Ecosystem

The Indian government has taken a proactive approach by establishing over 60 toy clusters. These clusters are designed to attract domestic and global toy manufacturers, providing them with the necessary infrastructure and support to set up operations in India. Notable initiatives include the 400-acre cluster developed by Aequs in Koppal, Karnataka, and a 100-acre facility in Uttar Pradesh.

Quality Control for Toy Excellence

To ensure that Indian toys meet global quality standards, a Toy Quality Control Order was issued in February 2020 under the Bureau of Indian Standards (BIS) Act. This order focuses on standardization in both production and import. An important recent development is the exemption of handicraft artisans and MSMEs from complying with QCO norms for one year, further promoting domestic toy manufacturing.

A Bright Future Ahead

The Indian toy manufacturing industry is on an upward trajectory. Valued at $1 billion in 2019, it is projected to reach $2 billion by 2024, as reported by FICCI and KPMG. Export figures are equally promising, with Indian toy exports surging from $109 million in 2018 to $177 million in 2021. Simultaneously, imports of toys into India have dwindled from $304 million in 2018 to $36 million in 2021, signaling a shift in favor of domestic manufacturers.


As Indian manufacturers set their sights on increasing exports to African and Middle Eastern countries, the future of the Indian toy industry is painted with optimism.

Future Outlook

The coming years hold immense promise for India's toy industry, positioning it as a key player in the global export sector. Europe and North America, with their high demand for toys, present significant export opportunities for Indian manufacturers. The rising middle class, a burgeoning retail boom, and evolving consumption patterns favoring toys as sources of entertainment and education are poised to drive moderate but steady growth in the Indian toy market.

E-commerce's Growing Role

Internet retailing is gaining prominence as a distribution channel for toys. Online retailers offer a wide variety of merchandise, including new launches and branded toys, contributing to the sector's growth. While online toy sales currently represent a modest 8%, this segment is experiencing rapid expansion and is expected to exert a considerable influence on overall toy demand in the near future.

A Diverse Toy Landscape

The toy industry is poised for moderate growth in 2023, driven by factors such as a growing young population, rising disposable incomes, and a wave of innovations catering to junior consumers. Across various toy categories, including electronic toys, puzzles, building and construction toys, dolls, ride-ons, sports and outdoor play toys, infant and preschool toys, and activity toys, sizable prospects await exploration.

The Indian toy industry, with its unwavering commitment to quality, innovation, and global standards, is set to script a remarkable story in the years to come, capturing the hearts of children both at home and across the world.