Union Commerce and Industry Minister Piyush Goyal addressed the 17th Toy Biz International B2B Exhibition 2026, highlighting the transformation of India's toy industry through policy support and industry innovation. The Minister announced government plans to establish modern testing facilities across toy manufacturing clusters through BIS, National Test House, and other government laboratories, urging industry stakeholders to identify required testing equipment to meet international quality standards.
Goyal revealed that toy exports have increased by 239% over the last four years while imports declined by 32%, creating a domestic market where Indian manufacturers now dominate. The Indian toy market is approximately ₹18,000 crore, with imports accounting for only ₹2,500-3,000 crore, reversing the previous scenario where only 12% of the market was served by domestic manufacturers. The Minister called for tenfold growth in exports going forward.
Policy Support and Manufacturing Ecosystem
Over 21,000 MSME units operate across more than 50 toy clusters established under the National Toy Action Plan launched in 2020. The Minister clarified that export turnover is not included while determining MSME status, allowing enterprises to expand substantially while continuing to benefit from MSME framework benefits. Many units undertake contract manufacturing for both Indian and international brands.
Technology Adoption and Quality Standards
The Minister urged manufacturers to adopt Computer-Aided Design and Computer-Aided Manufacturing (CAD-CAM) technologies and CNC machining to improve product quality, precision, and efficiency. He emphasized quality stitching, superior thread quality, machine-stitched products, and attention to manufacturing details, noting these factors determine global market success. The industry was encouraged to focus on high-quality paints, superior finishing, safe edges, and durable products with batch-wise testing for durability, paint quality, and performance of battery-operated toys.
Export Expansion through FTAs
Goyal highlighted nine Free Trade Agreements concluded under Prime Minister Modi's leadership that provide access to developed and high-income markets. The India-UK FTA will become operational from July 15, 2026, with the Minister urging immediate business delegations to explore UK opportunities. Duty-free access extends across 27 EU countries including Italy, France, Germany, Spain, and Portugal. Additional FTAs involving GCC countries, Mexico, Brazil, and Canada are expected to progress by year-end 2026. The global toy market is estimated at approximately $120 billion.
Institutional Support and Future Initiatives
The government will support Export Promotion Missions, overseas exhibitions, and potentially warehousing facilities abroad during initial years to facilitate just-in-time delivery. Goyal proposed public-private partnership models for Centres of Excellence with facilities for testing, product development, innovation, and design. The Toy Association of India, currently with 1,200 members, was urged to expand its membership to include all 21,000 manufacturers nationwide. For quality protection, manufacturers facing unfair imports or dumping can approach DGTR, DPIIT, or other concerned authorities for intervention. Transitional arrangements under Quality Control Orders are intended to facilitate investment, brand building, and market development while strengthening India's position as a global manufacturing hub.