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For years, India’s toy market relied heavily on imports, with China emerging as the dominant supplier. Today, the country is building a globally competitive toy manufacturing industry backed by government policy, rising domestic production and ambitious export targets.
A sector in transition
India’s toy industry has undergone a significant transformation over the past few years.
Finance Minister Nirmala Sitharaman said toy imports have fallen by 71% since 2019, while toy exports reached US$186 million in FY2025-26, with Indian-made toys now shipped to 153 countries.
The transformation has been driven by higher import duties, mandatory BIS quality standards, stricter Quality Control Orders (QCOs) and policies encouraging domestic manufacturing.
Government’s long-term strategy
The government’s objective extends beyond reducing imports.
The government has supported the sector through the National Action Plan for Toys, higher import duties, mandatory BIS standards and Quality Control Orders (QCOs). The initiative focuses on strengthening manufacturing clusters, encouraging design and innovation, improving skills, supporting MSMEs and expanding exports. India has also signed trade agreements with countries including the UAE and Australia, improving overseas market access for Indian manufacturers.
Ministers set ambitious targets
Speaking at the 17th Toy Biz International B2B Expo in New Delhi, Finance Minister Nirmala Sitharaman urged Indian manufacturers to think beyond the domestic market.
She said the industry should aim to capture one-fourth of the projected US$179 billion global toy market by 2032, instead of limiting its ambitions to India’s projected US$5 billion domestic toy market by 2034.
Commerce and Industry Minister Piyush Goyal echoed the call for expansion.
According to Piyush Goyal, India currently accounts for just 0.2-0.3% of the estimated US$120 billion global toy industry, leaving enormous room for growth. He urged manufacturers to target a 10-fold increase in toy exports over the next four years while adopting advanced technologies such as CAD-CAM design and CNC manufacturing to improve competitiveness.
Indian companies leading the shift
Several Indian companies are playing a key role in expanding domestic manufacturing and exports.
Among the companies expanding India’s domestic manufacturing base are Funskool India, Urban Tots (Deepak Houseware & Toys Ltd.), OK Play India, Shumee and Playgro Toys India.
Funskool has expanded its manufacturing base in Tamil Nadu and exports toys to markets across Asia, Europe, the Gulf, Africa and the United States.
Urban Tots, based in Rajasthan, manufactures a wide range of Made-in-India toys and supplies major retailers including Hamleys, FirstCry, DMart and Reliance Retail, while also expanding its export footprint.
States such as Tamil Nadu, Karnataka, Uttar Pradesh and Rajasthan have introduced initiatives to expand toy manufacturing and attract investment.
Opportunities and challenges
Despite recent progress, India’s presence in the global toy industry remains small.
With a share of only 0.2-0.3%, India still trails major manufacturing hubs such as China and Vietnam. Industry experts say India must improve scale, product design, branding and supply chain efficiency to compete globally while continuing to invest in manufacturing capacity and automation.
The road ahead
The government’s message is clear: India should move beyond import substitution and become a leading global exporter of toys.
If manufacturers continue to scale production, improve quality and expand exports, the country could emerge as one of the world’s leading toy manufacturing destinations over the coming decade.
The government’s push aims to transform India from a toy import-dependent market into a global toy manufacturing hub.
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