India’s Toy Industry and its Export

India’s toy industry  has undergone a major transformation and is now manufacturing domestically and exporting to 153 countries.

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Context

  • India’s toy industry  has undergone a major transformation and is now manufacturing domestically and exporting to 153 countries.

Toy Sector in India and its Historical Linkages

  • India’s toy-making tradition dates back to the Indus Valley Civilisation (c. 2500 BCE), with early toys made from clay, wood, and cloth reflecting cultural and social values. 
  • Traditional toys like Channapatna wooden toys and Kondapalli figurines are known for their eco-friendly craftsmanship and regional themes. 
  • Toy-making in India is deeply rooted in cultural customs and varies by region, shaped by local folklore and artisanal practices. 

Present Status

  • India’s toy market is valued at US$ 1.9 billion in 2024 and is projected to grow at a CAGR of approximately 10%, reaching US$ 4.7 billion by 2033. 
  • Currently, around 90% of the market is dominated by the unorganised sector, comprising small-scale and cottage industries.
  • However, the organised sector is expanding quickly, fueled by increasing brand awareness, urbanisation, and rising digital connectivity.

Initiatives by Government

  • The government has launched several initiatives to strengthen the domestic toy industry, reduce reliance on imports, and promote local manufacturing
  • Make in India and Atmanirbhar Bharat aim to boost indigenous production and establish India as a global hub for toy manufacturing.
  • The government raised import duties on toys from 20% to 60% to curb cheap imports and support local manufacturers
  • Quality Control Orders (QCOs): Implementation of stringent quality and safety standards (BIS certification) has ensured compliance and enhanced consumer confidence in toys made in India.
  • Production Linked Incentive (PLI) Scheme offers financial incentives to manufacturers who focus on high-quality, innovative, and export-ready toy production.

Challenges

  • The Indian toy industry, despite strong growth potential, faces key challenges such as market fragmentation, outdated production methods, and limited technological capabilities.
  • The dominance of unorganised players affects quality and brand recognition.
  • Traditional toy-making communities face obstacles related to sustainability, market accessibility, and competition from mass-produced plastic toys, despite their cultural value.

Conclusion

  • The Indian toy industry is undergoing major transformation driven by demographics, shifting consumer preferences, policy support, and technology. With growing demand for educational, tech-enabled, and eco-friendly toys, there are vast opportunities for innovation and expansion. 
  • By improving product quality, using digital platforms, and incorporating cultural elements, India can emerge as a global toy leader.


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