Key Details
Coordinated policy interventions have strengthened domestic toy manufacturing, expanded exports and improved India’s global competitiveness.
Area | Key Finding | Why It Matters |
|---|---|---|
Trade performance | Toy exports rose from US$152.7 million to US$384.7 million (2017–18 to 2025–26). | Indicates stronger export competitiveness. |
Trade balance | India recorded a US$152 million trade surplus in toys in 2025–26. | Reflects the shift from net importer to net exporter. |
Domestic manufacturing | Imports of traditional and educational toys fell by 66%. | Suggests greater domestic production capacity. |
Employment | Employment increased from 8,685 to 17,693 (2018–19 to 2023–24). | Manufacturing growth is creating jobs. |
Quality ecosystem | BIS certification and the Toy QCO became mandatory. | Raises product quality and consumer confidence. |
Innovation | Toycathon, e-Toycathon and e-Toys Lab support new product development. | Encourages higher-value manufacturing. |
Traditional sector | GI-tagged toys and ODOP receive dedicated support. | Links manufacturing growth with artisan livelihoods. |
Summary
From Import Dependence to Export Competitiveness
India’s toy industry has undergone a significant structural transformation over the past decade. Once heavily dependent on imported products, the sector has expanded domestic manufacturing, more than doubled exports from US$152.7 million in 2017–18 to US$384.7 million in 2025–26, reduced imports of traditional and educational toys by 66%, and recorded a US$152 million trade surplus. These trends suggest that the industry is becoming more competitive internationally while strengthening domestic production and employment.
The Government attributes this shift to a coordinated policy approach rather than any single intervention. Quality regulation through the Toy Quality Control Order (QCO) and mandatory BIS certification, higher import duties, manufacturing support, export promotion and cluster development have collectively strengthened the domestic production ecosystem while improving consumer confidence in Indian-made toys.
Building an Integrated Manufacturing Ecosystem
The report highlights that India’s toy sector is being developed through an integrated industrial strategy that combines manufacturing, innovation, skills, quality assurance and market access. Alongside support for MSMEs and manufacturing clusters, initiatives such as Toycathon, e-Toycathon and MeitY’s e-Toys Lab are encouraging product design, electronics integration and technology-driven toy development. At the same time, programmes such as One District One Product (ODOP), GI tagging, Districts as Export Hubs and Toy Biz International are helping traditional manufacturers strengthen branding, market access and export readiness.
The policy framework also seeks to balance industrial modernisation with cultural preservation by exempting registered artisans and several GI-tagged traditional toys from selected regulatory requirements, allowing indigenous craft traditions to coexist with expanding modern manufacturing.
A Broader Model for Manufacturing Policy
Beyond the toy industry itself, the Government presents the sector as an illustration of how multiple policy instruments can work together to build globally competitive manufacturing ecosystems. Rather than relying solely on production incentives, the approach combines quality standards, innovation support, trade policy, export promotion, MSME development and traditional industry support to strengthen the entire value chain.
The experience suggests that sustained manufacturing competitiveness depends not only on expanding production capacity but also on improving product quality, design capability, technology adoption and access to international markets. The toy sector therefore offers a useful example of how coordinated industrial policies can support employment, entrepreneurship, exports and value addition while preserving India’s traditional manufacturing strengths.
Policy Relevance
The toy sector demonstrates the value of coordinated industrial policy, combining quality regulation, tariff measures, innovation support and export promotion to strengthen domestic manufacturing ecosystems.
BIS quality standards and artisan exemptions show that regulation can improve quality without displacing traditional producers, balancing industrial upgrading with the protection of craft sectors.
Moving into higher-value consumer products will require stronger design, electronics and digital capabilities, integrated with MSME manufacturing.
The sector offers a replicable model for other labour-intensive industries, demonstrating how import substitution can be combined with export growth and employment generation.
Long-term competitiveness will depend on productivity, innovation and global market access, rather than relying primarily on protective measures.Relevant Question for Policy Stakeholders: How can countries develop internationally interoperable AI governance frameworks that encourage innovation while ensuring safety, protecting human rights, addressing military and environmental risks, and preventing widening global inequalities in AI capabilities?
Relevant Question for Policy Stakeholders: How can India expand high-value toy manufacturing without weakening the traditional artisan ecosystems that remain central to the sector?
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