Massive Growth in Toy Industry: India Overtakes China, Witnessing 239% Surge in Exports

Over the years between 2015 and 2023, there has been a notable shift in the global landscape of toy manufacturing, with major companies transitioning from China to India. The country has witnessed a remarkable growth of 239% in its domestic toy industry, while simultaneously experiencing a decline of 52% in toy imports. Several factors contribute to this significant transformation.

BIS Regulations and High Import Duties: Key Factors Shaping India’s Toy Market

Firstly, India has introduced stringent Bureau of Indian Standards (BIS) regulations for the sale of toys. Without BIS certification, no company can legally sell toys in the Indian market. This move ensures that only toys meeting specified quality standards are available to consumers, enhancing product safety and reliability.

Secondly, to promote local manufacturing and reduce dependency on imports, the Indian government has imposed high import duties on toys. These duties, amounting to as high as 70%, act as a protective measure for domestic toy manufacturers, making imported toys less competitive in terms of pricing.

India’s Toy Market Set for Exponential Growth: Insights from IMARC Market Research

According to findings from market research firm IMARC, India’s toy market currently stands at a staggering ₹14,000 crores. Projections suggest that by 2032, its value is anticipated to soar to ₹36,000 crores. This substantial growth trajectory underscores the immense potential and opportunities within the Indian toy industry.

The surge in demand for toys is reflected in the establishment of approximately 6000 manufacturing units across the country. These factories are actively engaged in producing a diverse range of toys, catering to both domestic and international markets. This proliferation of manufacturing facilities signifies the robustness of India’s toy manufacturing sector and its capacity to meet growing consumer demands.

Chennai CEO Observes Shift in Sourcing Trends of Global Brands in India

Jaswant, the CEO of a Chennai-based firm, remarks on the evolving sourcing dynamics of global brands in India. Notably, household names like Hasbro, Mattel, Spin Master, and Early Learning are increasingly turning to India as a sourcing hub. Concurrently, there’s a gradual transition happening with Italian brands like Dream Plast, Microplast, and Incas, gaining traction in the Indian market. 

This shift indicates a broader trend of diversification and globalization within India’s sourcing ecosystem, as both Indian and international brands strategically adapt to market demands and opportunities. Jaswant’s observation highlights the dynamic nature of India’s business landscape and its growing significance in the global supply chain.

Akash Shrivastav

My name is Akash Shrivastav, and I am a Blogger. I have 8 years of experience in blogging for Finance, Business, Investment, Stock Market, Cryptocurreny and more. Through my writing, I aim to provide readers with insightful and informative content.