India Toy Industry: Growth, Exports and Policy Support

Why in News?

• India’s toy industry is being strengthened through policy support, quality control, export promotion and indigenous manufacturing.
• The sector has moved from import dependence towards global competitiveness, with India becoming a net exporter of toys.
• Toy exports increased from US$152.7 million in 2017–18 to US$384.7 million in 2025–26.
• Government initiatives such as National Action Plan for Toys, QCO, Toycathon, ODOP, GI promotion and Districts as Export Hubs are supporting the sector.

India’s Toy Industry: Heritage and Opportunity

India’s toy industry reflects a blend of cultural heritage, craftsmanship, innovation and manufacturing growth.

• India’s toy tradition dates back nearly 5,000 years.
• Excavations at Harappa and Mohenjo-Daro reveal ancient toy-making traditions, including clay carts and figurines.
• Traditional toys such as wooden figurines and dolls inspired by the Ramayana and Mahabharata connected children with India’s cultural heritage.
• Today, traditional craftsmanship is being combined with modern design, technology and entrepreneurship.

This transformation is helping India emerge as a hub for quality, safe, educational and culturally rooted toys.

Emerging Growth Drivers

India’s toy industry is gaining momentum due to strong supply-side and demand-side factors.

Large Consumer Base

• India’s population exceeds 1.4 billion, with a significant share below the age of 25 years.
• Rising incomes and improving purchasing power are increasing toy consumption.

Changing Consumer Preferences

• Urbanisation and changing lifestyles are creating demand for modern and licensed toys.
• Parents are increasingly choosing educational, skill-based and STEM toys.

Technology and Digitalisation

• Smart toys using Artificial Intelligence, Augmented Reality and Virtual Reality are gaining popularity.
• E-commerce platforms are improving market access for manufacturers and artisans.

Cultural Advantage

• India’s traditional toys have strong domestic and international appeal due to their cultural value and handmade identity.

Economic Impact

• The toy industry is not only a cultural sector but also an important contributor to the economy.

It supports:

• Artisans
• MSMEs
• Manufacturers
• Traders
• Women entrepreneurs
• Rural and urban livelihoods
• Employment in Games and Toys, under NIC Code 324, more than doubled from 8,685 in 2018–19 to 17,693 in 2023–24.
• This highlights the sector’s role in employment generation, entrepreneurship and local enterprise development.

Government Initiatives

National Action Plan for Toys, 2020

The National Action Plan for Toys was formulated to strengthen India’s toy ecosystem.

It focuses on:

• Promoting toys based on Indian culture, values and history.
• Encouraging toys as a learning resource.
• Supporting indigenous toy clusters.
• Promoting local manufacturing.
• Monitoring toy quality.
• Restricting unsafe and sub-standard imports.
• Incentivising toy manufacturers.

Quality Control Order for Toys, 2020

The Quality Control Order was introduced to ensure toy safety and improve product quality.

Key features:

• Made BIS certification compulsory for domestic and foreign manufacturers.
• Ensures compliance with Indian safety standards.
• Covers physical, chemical and electrical safety requirements.
• Helped create a level playing field for domestic manufacturers.

As of May 2026, BIS granted:

• 1,786 licences to domestic manufacturers.
• 56 licences to foreign manufacturers.

These licences are linked to toy safety standards IS 9873 and IS 15644.

The QCO exempts:

• Artisans registered with the Development Commissioner (Handicrafts).
• Registered proprietors and authorised users of GI-tagged products.

Tariff Measures

To reduce the price advantage of imported toys and support local manufacturing:

• MFN tariff on toys increased from 20% to 60% in 2020.
• It was further raised to 70% in 2023.
• Tariff on Parts of Electronic Toys, HS 95030091, was revised to 20% in Union Budget 2025–26.

These measures support domestic production, employment and trade balance.

Toy Biz International B2B Exhibition

The Toy Biz International B2B Exhibition was held from 4–7 July 2026 in New Delhi.

It provides:

• A platform for toy manufacturers.
• Access to domestic and international buyers.
• Business networking opportunities.
• Market expansion support.
• Global promotion for Indian toys.

Toycathon and e-Toycathon

• Toycathon, launched in 2021, supports the vision of Atmanirbhar Bharat.
• It encourages students, teachers, designers, experts and start-ups to develop toys and games based on:
• Indian culture
• Heritage
• Local folklore
• National heroes
• Value systems
• To strengthen electronic toys, the government organised the first Electronic Toy Hackathon, or e-Toycathon, in 2025.
• It focused on innovative and educational electronic toys that promote creativity, learning and child development.

e-Toys Lab

The e-Toys Lab was established by the Ministry of Electronics and Information Technology at C-DAC, Noida.

It aims to strengthen India’s indigenous electronic toy industry through:

• Hands-on training in electronic toy design.
• Prototype development.
• Product testing.
• Integration of electronics and IT with toy manufacturing.

Selected young engineers, including candidates from SC/ST and the North Eastern Region, undergo one year of structured training:

• 6 months of research at e-Toys Lab.
• 6 months of industry training.

Manak Manthan

In April 2026, BIS organised Manak Manthan on IS 9873 Part 1:2025.

It focused on:

• Mechanical safety requirements.
• Physical safety requirements.
• Awareness among manufacturers and stakeholders.
• Adoption of Indian Standards.

This supports the production of safer and more reliable toys for children.

GI, ODOP and District Export Promotion

One District, One Product

The ODOP initiative promotes district-specific products by supporting branding, manufacturing, exports and employment.

For the toy sector, ODOP helps in:

• Product diversification.
• Branding and packaging.
• Skill development.
• Quality standardisation.
• E-commerce access.
• Participation in international expos.
• Export certification awareness.
• Funding, marketing and technology upgradation.

GI-Tagged Toys

Several traditional Indian toys have received Geographical Indication status.

Examples include:

• Channapatna Toys and Dolls – Karnataka
• Leather Toys of Indore – Madhya Pradesh
• Thanjavur Doll – Tamil Nadu

GI tagging helps:

• Preserve traditional knowledge.
• Protect regional identity.
• Prevent unauthorised use.
• Improve market value.
• Support artisan livelihoods.
• Promote rural economic development.

GST Reduction

The reduction of GST on toys from 12% to 5% has made toys more affordable.

It also supports:

• Domestic demand.
• Educational and developmental toys.
• MSMEs and local manufacturers.
• Early childhood learning through play.

Free Trade Agreements

India’s trade agreements provide zero-duty market access for Indian toy exports in partner countries.

Important agreements include:

• India-UAE CEPA
• India-Australia ECTA
• India-EFTA Trade and Economic Partnership Agreement
• India-Oman CEPA
• India-New Zealand FTA
• India-United Kingdom Comprehensive Economic and Trade Agreement

These agreements can improve India’s access to global toy markets.

Districts as Export Hubs

The Districts as Export Hubs initiative aims to transform districts into export growth centres.

Key features:

• State Export Promotion Committees and District Export Promotion Committees have been formed in 36 States and Union Territories.
• Products and services with export potential have been identified in all districts.
• GI products, agricultural clusters and toy clusters are included.
• More than 10 districts have been identified with toy and doll export potential.

This supports local industries, employment, market linkages and balanced regional growth.

Significance

India’s toy ecosystem is important for multiple reasons.

• Manufacturing Growth: Strengthens domestic toy production and reduces import dependence.
• Export Competitiveness: Helps India enter global toy and entertainment goods markets.
• Cultural Preservation: Protects traditional toys and craft knowledge.
• Employment Generation: Supports artisans, MSMEs, women and small businesses.
• Education: Promotes STEM, skill-based and learning-oriented toys.
• Atmanirbhar Bharat: Encourages indigenous manufacturing and innovation.
• Local to Global: Links local toy clusters with international buyers and export markets.

Challenges

• Need for continuous quality compliance.
• Competition from large global toy producers.
• Limited scale among traditional artisans and MSMEs.
• Need for better design, packaging and branding.
• Requirement of technology adoption in electronic and smart toys.
• Export certification and global safety-standard challenges.

Way Forward

• Strengthen toy clusters with common facilities and design centres.
• Expand BIS awareness and quality certification support.
• Promote STEM and electronic toy innovation through e-Toys Lab and Toycathon.
• Link artisans with e-commerce, ODOP and export platforms.
• Support GI-tagged toys with branding and international promotion.
• Use FTAs and District Export Plans to scale exports.

Conclusion

India’s toy industry is moving from import dependence to export competitiveness by combining cultural heritage with modern manufacturing and innovation. Policy measures such as NAPT, QCO, Toycathon, ODOP, GI promotion, GST reduction and export-hub initiatives have strengthened domestic production and global market access.A stronger toy ecosystem can support Atmanirbhar Bharat, MSME-led growth, artisan livelihoods, women’s participation, educational development and Viksit Bharat 2047.