India is targeting global growth: The government has identified 10 focus markets, including the US, UK, Poland and Australia, as it seeks to raise India’s global toy market share to 5% by 2032.
Imports have fallen while exports rise: Toy and related product exports climbed 89.1% to $384.7 million between FY19 and FY26, while imports fell 37.5% to $232.3 million.
China remains part of the supply chain: Indian manufacturers have reduced dependence on Chinese finished toys but still rely on China for components, electronics, moulds, tooling, machinery and specialised technologies.
India’s Toy Takeover: Can It Finally Beat China And Capture 5% Of The Global Market?
India’s toy industry is turning from import substitution to export ambition, with government support helping local manufacturers challenge Chinese dominance and target a 5% share of the global market by 2032
Summary
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India is trying to turn its success in reducing Chinese toy imports into a larger export opportunity, with the government targeting a 5% share of the global toy market by 2032, up from less than 1% currently, according to The Economic Times.
The government has identified 10 priority markets, including the US, UK, Poland and Australia, along with product segments such as dolls, wheeled toys, video-game consoles and screen-based games.
Finance Minister Nirmala Sitharaman has urged Indian toymakers to aim even higher, with imports falling 71% between FY19 and FY26 and toy exports reaching $186 million in FY26. Indian toys are now exported to 153 countries.
Broader government data covering toys, games, video-game equipment and entertainment articles showed exports rising 89.1% from $203.5 million in FY19 to $384.7 million in FY26, while imports fell 37.5% to $232.3 million. India consequently moved from a $213 million trade deficit in FY18 to a $152 million surplus in FY26.
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Policy Push Changes Toy Market
India’s toy manufacturing sector began gaining ground after the government raised basic customs duty on toys from 20% to 60% in 2020 and then to 70% in 2023, according to government data cited by ET.
The Toys Quality Control Order, introduced in 2020 and implemented from January 2021, also made Bureau of Indian Standards (BIS) certification mandatory for toys sold domestically.
A 2019 government exercise found that only 33% of toys available in the market complied with prescribed BIS standards. By 2025, a BIS survey found compliance among samples had risen to 95%.
Government initiatives including the National Action Plan for Toys, Toycathon, toy clusters, export incentives and trade agreements have also supported the sector.
Scale Remains A Challenge
Despite the progress, India’s toy industry remains fragmented. Deloitte estimates cited by ET put toy and games production at $728 million in 2024, with exports at $169 million.
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The sector had around 15,097 companies, with the five largest accounting for only 8.5% of production value.
Limited scale makes it harder for manufacturers to invest in international certifications, automation, tooling, packaging and overseas distribution.
China’s advantage lies in its dense manufacturing clusters, where mould makers, component suppliers, processors, assemblers and logistics firms operate close together.
India Still Depends On China
India’s reduced reliance on Chinese finished toys does not mean it has achieved supply-chain independence.
Indian manufacturers still source electronic components, motors, moulds, tooling, specialised machinery, raw materials and technologies from China, according to ET.
The industry also faces an intellectual-property gap. Global toy companies derive significant value from characters, franchises, storytelling and licensing, while Indian manufacturers have traditionally focused more on production and distribution.
For India to capture a larger global market share, the challenge will therefore be not just making more toys, but building competitive supply chains, brands and intellectual property around them.
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