Indian Toy Industry Sees Remarkable Growth, Report Finds

A recent study has unveiled the significant strides made by India’s toy industry, highlighting a 52% reduction in toy imports and an impressive 239% increase in exports during the 2022-23 financial year (FY23), compared to FY15. This progress reflects the growing quality and competitiveness of domestically manufactured toys, positioning India as a rising force in the global toy market.

The findings come from a case study titled Success Story of Made in India Toys, conducted by the Indian Institute of Management (IIM) Lucknow under the direction of the Department for Promotion of Industry and Internal Trade (DPIIT). The report emphasizes the positive role of government initiatives in creating a more favorable manufacturing environment for the toy sector.

Between 2014 and 2020, the government’s efforts have led to the doubling of toy manufacturing units across India. The country has also seen a reduction in reliance on imported inputs, dropping from 33% to just 12%. Additionally, the gross sales value has increased at a compounded annual growth rate (CAGR) of 10%, accompanied by a notable rise in labor productivity.

India Emerges As A Global Export Hub

The report underscores India’s growing presence in the international toy market. Due to the country’s integration into the global toy value chain and the provision of zero-duty market access to countries such as the United Arab Emirates (UAE) and Australia, India has become a significant toy exporter. This development signals India’s potential to rival established toy manufacturing hubs like China and Vietnam.

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To further establish India as a global leader in toy manufacturing, the report emphasizes the need for continuous collaboration between the government and the toy industry. Strategic initiatives in areas such as technology advancement, e-commerce integration, and export expansion are essential to maintaining momentum. The report also advocates for increased investment in brand-building, cultural diversity, and engaging partnerships with educators, parents, and regional artisans.

By focusing on these areas, India can strengthen its position as a viable alternative to traditional toy manufacturing powerhouses. These combined efforts will help the country meet the rising demand for high-quality, culturally relevant toys in global markets.