India's Toy Industry: On Track for Global Market Leadership

India's toy industry is poised for significant growth, aiming for a larger presence in the global market, projected to reach $179.4 billion by 2032. Supported by policy measures, skill development, and quality enhancements, the sector is transitioning from being an importer to a net exporter, strengthening India's manufacturing ecosystem.

India's toy industry is experiencing a robust growth trajectory, with promising prospects to capture a significant share of the global toy market. This market is projected to reach USD 179.4 billion by 2032, as per a report from Punjab National Bank (PNB). Key drivers of this transformation include advancements in skill development, technology adoption, and elevated quality standards.

The report emphasizes that India's toy industry is strategically positioned to expand its presence in the global marketplace. Valued at approximately USD 1.5 billion in 2023, the industry has benefited from substantial governmental support. Notably, the Union Budget 2025-26 underscores the sector's importance by introducing the National Action Plan for Toys, aimed at fostering cluster development, enhancing skills, and establishing a robust manufacturing ecosystem.

Over recent years, government policies have significantly bolstered domestic manufacturing. The Quality Control Order (QCO) of 2020 enforced stricter quality standards, while import duties on toys increased from 20% to 60% in February 2020 and to 70% in March 2023. These strategic measures have drastically cut toy imports while boosting domestic production. Trade statistics reveal a sharp decline in India's toy imports, from USD 304 million in FY2018-19 to just USD 65 million in FY2023-24, a 79% drop. Simultaneously, exports surged by 40%, growing from USD 109 million to USD 152 million during the same period. Consequently, India has emerged as a net exporter of toys. With ongoing efforts towards self-reliance, enhanced quality, and a strengthened manufacturing ecosystem, India's toy industry is poised for global expansion, boosting economic strength and aligning with the vision of establishing India as a global manufacturing leader.

(With inputs from agencies.)