Commerce Minister Piyush Goyal on Saturday announced that the government will establish modern testing facilities across toy manufacturing clusters nationwide, leveraging the Bureau of Indian Standards (BIS), the National Test House, and other government and semi-government laboratories. Speaking at the 17th Toy Biz International B2B Exhibition 2026 in New Delhi, Goyal urged industry stakeholders to identify and communicate the specific testing equipment needed to ensure Indian toys meet the highest quality benchmarks for both domestic and international markets.

Key Announcements at the Exhibition

Goyal proposed a public-private partnership model under which industry and government would jointly establish Centres of Excellence equipped with testing facilities, product development infrastructure, innovation labs, and design centres. He suggested these centres also include dedicated spaces for showcasing newly launched, high-quality products.

The Minister called on industry leaders to set up skill development centres and partner with Industrial Training Institutes (ITIs) to train workers in advanced and good manufacturing practices. He also encouraged manufacturers to pursue brand-building initiatives, assuring support through the Export Promotion Mission.

Technology Upgradation Push

Goyal urged toy manufacturers to adopt Computer-Aided Design and Computer-Aided Manufacturing (CAD-CAM) technologies alongside CNC machining to sharpen product quality, precision, and efficiency. He stated that integrating CAD-CAM with CNC-based manufacturing would enable the industry to develop high-quality products at greater scale. Continuous improvement in manufacturing processes, he said, would help Indian toy makers carve out a distinct position in global markets.

MSME Growth and Sector Scale

Addressing MSME stakeholders, Goyal encouraged every micro enterprise to aspire to become small, every small to become medium, and every medium to become large. He pointed out that export turnover is excluded when determining MSME status, allowing enterprises to expand substantially while continuing to benefit from the MSME framework — a provision that, he argued, removes a key disincentive to scaling up.

Goyal noted that over the 11 years of the 'Make in India' initiative, more than 50 toy clusters have been established across the country. Approximately 21,000 MSME units are now associated with toy manufacturing, with many also undertaking contract manufacturing for Indian and international brands.

India's Opportunity in the Global Toy Market

The global toy market is estimated at around $120 billion, and Goyal underscored that maintaining high quality standards would enable India to significantly expand its share. This comes amid a broader government push to position India as a credible alternative to China in labour-intensive manufacturing sectors. Notably, the toy industry has been among the early beneficiaries of import duty rationalisation and quality control orders introduced since 2020.

With testing infrastructure, design capabilities, and skill development now on the policy agenda simultaneously, the sector appears poised for a more structured phase of growth — provided execution keeps pace with ambition.