India's Toy Industry Transformation and Export Growth
The Indian toy industry has undergone a remarkable transformation, shifting from being import-dependent to achieving net exporter status with significant improvements in quality standards and manufacturing capabilities. According to data presented by Minister of State for Commerce and Industry Shri Jitin Prasada in Lok Sabha, India's toy exports surged by 89.1% to $384.7 million in FY 2025-26 from $203.5 million in FY 2018-19, while imports declined by 37.5% to $232.3 million from $371.7 million during the same period.
This transformation was driven by comprehensive government initiatives addressing quality and safety concerns. A 2019 mystery shopping exercise revealed only 33% of toys in the domestic market met acceptable quality standards as per BIS standards, prompting aggressive policy measures. The government implemented a 21-point National Action Plan for Toys (NAPT) coordinated by 14 Ministries and Departments, focusing on promoting toys based on Indian values and culture, strengthening quality monitoring, and boosting domestic manufacturing.
Key policy measures included increasing Basic Custom Duty on toys from 20% to 60% in February 2020 and subsequently to 70% in 2023, though the duty on parts of electronic toys (HS 95030091) was revised to 20% in the Budget FY 2025-26. A Quality Control Order for toys was issued on February 25, 2020, and implemented from January 1, 2021. BIS has granted more than 1,800 licenses to domestic manufacturers and over 50 licenses to foreign manufacturers for using the BIS Standard Mark.
The initiatives have yielded substantial quality improvements, with a 2025 BIS survey showing 95% of toy samples conforming to prescribed quality standards, up from 33% in 2019. Cluster development has been prioritized with the Ministry of MSME approving 18 toy clusters under the SFURTI scheme, while the Ministry of Textiles provides designing and tooling support to 40 toy clusters.
Export promotion has been supported through multiple channels, including over 2,200 exporters receiving support under the RoDTEP scheme for toy exports, and zero-duty market access under free trade agreements with UAE, Australia, EFTA, Oman, New Zealand, and the United Kingdom. The industry has also seen innovation support with over 700 startups recognized under the Startup India initiative and promotional events like Toycathon and toy fairs.
The 17th Toy Biz International B2B Exhibition held from July 4-7, 2026, at Bharat Mandapam, New Delhi, showcased this growth with participation from 400 Indian toy brands, 100 international buyers from 40 countries, and approximately 30,000 business visitors. The exhibition facilitated connections between manufacturers and wholesalers, retailers, distributors, institutional buyers, and e-commerce platforms.
The National Education Policy 2020 has further supported the industry by emphasizing play and activity-based learning, with NCERT publishing a handbook on 'Toy Based Pedagogy' that prescribes using indigenous toys and games to develop competencies in young children.