India's Toy Industry Eyes Global Growth With Quality and Innovation

The minister highlighted that the country has concluded nine FTAs, giving Indian manufacturers improved access to several developed economies.

India's toy manufacturing sector is preparing for a new phase of expansion as the government pushes for better quality standards, advanced manufacturing and stronger global branding. Addressing the 17th Toy Biz International B2B Exhibition in New Delhi, Union Commerce and Industry Minister Piyush Goyal outlined a roadmap that encourages manufacturers to move beyond low-cost production and establish India as a trusted supplier of premium toys in international markets. The strategy combines technology, skill development, quality testing and trade opportunities while creating greater confidence among domestic manufacturers.

Government plans stronger support for toy manufacturers

Speaking to industry representatives, Piyush Goyal said the government will establish modern testing facilities across toy manufacturing clusters through the Bureau of Indian Standards, the National Test House and other government-supported laboratories. He asked manufacturers to identify the equipment needed for product testing so that Indian toys consistently meet international quality benchmarks.

The minister also encouraged micro, small and medium enterprises to think beyond their current size and steadily expand their businesses. He pointed out that export earnings are not counted while determining MSME status, allowing companies to grow internationally without immediately losing the benefits available under the MSME framework. According to him, every micro enterprise should aspire to become a small business, every small business should grow into a medium enterprise and medium-sized companies should continue building themselves into large manufacturing organisations.

To support long-term industrial growth, Goyal proposed partnerships between industry and Industrial Training Institutes to train workers in modern production techniques and good manufacturing practices. He suggested establishing Centres of Excellence through public-private partnerships where companies can access testing facilities, product design centres, innovation labs and spaces to showcase newly developed products. Such facilities, he said, would help manufacturers improve product quality while encouraging innovation across the sector.

Technology and trade agreements open new opportunities

The minister urged manufacturers to embrace modern production technologies such as Computer-Aided Design (CAD), Computer-Aided Manufacturing (CAM) and CNC machining to improve precision, consistency and manufacturing efficiency. He explained that advanced production methods will allow Indian companies to produce higher-quality toys capable of competing with established international brands.

Goyal also stressed the importance of paying close attention to manufacturing details, including stitching quality, finishing, durable materials and safe product design. According to him, these factors often determine whether products succeed in premium international markets where consumers expect consistent quality and safety standards.

India's expanding network of Free Trade Agreements is expected to provide additional opportunities for toy exporters. The minister highlighted that the country has concluded nine FTAs, giving Indian manufacturers improved access to several developed economies. He announced that the India-UK Free Trade Agreement will become operational from July 15 and urged manufacturers to immediately explore opportunities in the British market.

He also pointed to zero-duty access across European markets, including Germany, France, Italy, Spain and Portugal, describing them as premium destinations where Indian products can command higher prices. Looking ahead, Goyal said negotiations involving GCC countries, Mexico, Brazil and Canada are also expected to progress this year, creating even larger export opportunities for Indian manufacturers. He encouraged companies to organise business delegations, participate in overseas exhibitions and directly engage with retailers, supermarkets and e-commerce platforms to establish globally recognised Indian toy brands.

Domestic industry records strong growth

The minister said the Indian toy industry has undergone a remarkable transformation over the past few years under the Make in India initiative and the National Toy Action Plan launched in 2020. More than 50 toy manufacturing clusters have now been established across the country, while nearly 21,000 MSME units are engaged in toy production, with many supplying products to both Indian and international brands through contract manufacturing.

He noted that Indian manufacturers now account for the overwhelming majority of the domestic toy market. Earlier, only around 12 percent of toys sold in India were produced locally, whereas imports now represent only about ₹2,500 crore to ₹3,000 crore in a market valued at roughly ₹18,000 crore. The remaining demand is being met by domestic manufacturers, reflecting significant growth in local production capacity.

Export performance has also improved sharply. Toy exports have increased by 239 percent over the past four years, while imports have fallen by 32 percent. Goyal said these figures demonstrate the industry's growing competitiveness but added that manufacturers should continue improving product quality rather than becoming satisfied with recent achievements.

The minister reaffirmed the government's commitment to protecting domestic manufacturers from unfair imports and dumping through Quality Control Orders and other regulatory mechanisms. He assured companies facing such challenges that authorities, including the Directorate General of Trade Remedies and DPIIT, would provide necessary support.

Calling upon the Toy Association of India to expand its membership beyond its current 1,200 members, Goyal said a stronger industry platform representing nearly all of the country's 21,000 toy manufacturers would help present a unified voice while accelerating growth across the sector. With better technology, stronger quality standards, improved branding and wider access to global markets, he said India has the capability to become one of the world's leading toy manufacturing hubs in the coming years.