India’s Toy Renaissance: From Importer to Global Contender

Toys are more than just objects– they are tiny vessels of joy, carrying the symbols of memories, emotions, and the timeless bond between hearts and play. The concept of toys can be traced back in India to the Indus Valley Civilisation, approximately 8000 years ago. From ancient times until the modern era, toys were made from natural materials such as rocks, bamboo sticks, clay and fibre cloth. Today, with the advent of technology, most of the traditional toys are being replaced by electronic and plastic toys such as robots, racing cars, dolls, building toys, etc.

To the casual eye, toys may seem a product to play with, but in the hands of a smart entrepreneur, they play a serious business role.

India's toy industry is witnessing remarkable growth. Government-led initiatives such as Make in India and Vocal for Local have made a game-changer. The imposition of higher taxes on Chinese toys has shifted the spotlight to homegrown toy manufacturers. This article explores India's journey from a toy importer to reclaiming its domestic market, growing niche in global exports and challenges the sector is still facing in 2025.

Economic Landscape

According to the data from ResearchAndMarkets, the global toy market was valued at 2024 approximately USD 114.4 billion, with projections to grow to USD 120.5 billion in 2025 and up to USD 203 billion by 2034 with a compound annual growth rate (CAGR) of around 6%.

A Case Study conducted under the Ministry of Commerce & Industry on "Success Story of Made in India Toys" exhibited the remarkable growth between FY 2014-15 and FY 2022-23, marked by a substantial decline in imports by 52% and a significant rise in exports by 239%.

The increase in Basic Customs Duty on Chinese and Taiwanese products from 20% to 60% in February 2020, and subsequently to 70% in March 2023, acted as a protective shield, helping domestic players regain their ground against low-cost imports.

Tarun Dewan, Executive Director of Sports Goods & Toy Export Promotion Council (SGEPC), said to SMEStreet,

 “The foreign imports haven’t stopped completely— they’re just coming through alternative routes like Vietnam. In fact, Vietnamese imports have grown as Chinese imports have declined. Secondly, the BIS certifications have also played a role in growing our exports. Since Chinese factories are not getting BIS certifications, it’s kind of an unsaid rule (Either they aren't applying, or they're being quietly discouraged) — that’s led to a further decline in imports here.”

India currently contributes roughly 1-2% of the global total. The Ministry of Commerce and Industry data shows, toy exports rose to approximately USD 172 million in FY 2024–25, up from USD 152.3 million in FY 2023–24. 

“But when we talk about whether India is equipped or not, the answer is: there’s still a long way to go.
We currently hold a very small share of the global toy market. Although the shift has started, India is being seen as a very important partner by major global markets like the USA, UK, Germany, and Australia,” said Dewan. 

Government Support 

To elevate India’s domestic toy industry, the government has rolled out a string of focused initiatives. The National Action Plan for Toys (NAPT), a coordinated effort involving 21 action points, aims to foster manufacturing capabilities, indigenous design, and global competitiveness. It focuses on boosting compliance infrastructure, supporting raw material procurement, and empowering MSMEs with common facility centres and testing labs. Complementing this is the Employment Linked Incentive (ELI) scheme, which is in the pipeline and expected to encourage job creation while deepening local production networks.

 In just six years, the number of toy manufacturing units has doubled, and reliance on imported components has plummeted from 33% to just 12%. In 2021, the government also launched the Indian Toy Fair, a first-of-its-kind platform to showcase the diversity of Indian toys—traditional, educational, and digital. It brought together manufacturers, artisans, startups, and buyers, creating visibility and market access for local players.

Key Challenges Facing Toy Manufacturers

India's domestic toy industry is deeply unorganised, with only 4,000 companies registered under MSME, though the actual number is much higher. The sector is largely unorganised due to the dominance of informal units, a lack of awareness about MSME benefits, and limited access to modern technology and finance.

 Kumar Siddhartha, Secretary at SGEPC, said to SMEStreet,

"We have very limited compliance readiness. The top players they've got international certifications like ASTM, EN-71, and even REACH standards for chemical safety. All these require infrastructure and lab testing. And that's something we lack. If you compare the number of toy manufacturers and the number of toy exporters, you'll see a huge gap"

India is a massive domestic market for toys. There are many domestic manufacturers and startups for toys. Certifications like BIS allow them to trade locally, but don't help them in exports.

“Procurement is a big challenge,” says Siddhartha.“India doesn’t have a consolidated procurement system for raw materials in the toy or sports goods sector. These industries are small, so they don’t get the ecosystem support they deserve.” He adds that high costs of R&D and mould development, limited NABL-accredited labs, and a lack of Common Facility Centres further constrain small manufacturers. “The National Action Plan is trying to bridge these gaps to make our exporters globally competitive.”

Kanhaiya Jha of Plastech International Pvt Ltd told SMEStreet, “What we really need is a clear roadmap or proper guidance to make exporting easier, along with support in building networks with foreign buyers and suppliers.”

A Way Ahead

The rising demand in the global sphere presents challenges for the Indian toy industry to become fully equipped to cater for this rising demand. We need to work on designing innovation and craftsmanship to enhance production.

As India positions itself as a serious contender in the global toy marketplace, it’s clear that the journey ahead will not just be defined by manufacturing scale, but by strategic knowledge, digital adoption, and the strength of institutional support. From export documentation to understanding FTAs, from lab certifications to e-commerce onboarding, the gaps are many, but so are the initiatives to bridge them.

What stands out is the proactive role played by export councils like SGEPC, handholding the industry, especially MSMEs, through knowledge-driven programs. In a world where Blinkit and Zepto can now deliver toys within minutes, the value chain is shifting rapidly. And India, with its evolving toy ecosystem, is learning to play by new rules — not just to compete, but to lead.

The toy story, it seems, has only just begun — and this time, it’s Made in India.