Union Finance Minister Nirmala Sitharaman on Tuesday, 7 July 2026, highlighted the sharp turnaround in India's toy sector, citing export figures of $186 million in FY 2025–26 and a 71 per cent decline in toy imports since 2019. Speaking at an event organised by the Toy Association of India in New Delhi, she called for ambitions that go well beyond the sector's projected $5 billion market size by 2034.

Context

Addressing the industry body, Sitharaman noted that Indian toy exports now reach 153 countries, a marker of widening global acceptance. She described the import decline as 'reflecting the success of quality-focused, self-reliant manufacturing' — language that directly links sectoral performance to the broader Atmanirbhar Bharat policy framework announced in May 2020.

Her remarks underscore a consistent government position: domestic quality standards and tariff calibration, not just cost advantages, are driving the shift away from import dependence. The toy sector has been a visible test case for this approach since 2020, when stricter quality control orders were enforced on imported toys.

Policy Backdrop

India's toy manufacturing push sits within the broader Make in India initiative launched in September 2014, which sought to position the country as a global production hub across labour-intensive sectors. The subsequent Atmanirbhar Bharat Abhiyan sharpened that focus by targeting import substitution and MSME-level capacity building.

For toys specifically, the government deployed a combination of mandatory Bureau of Indian Standards (BIS) certification for imports, higher basic customs duties, and promotional support for domestic manufacturers — a multi-instrument playbook that has since been replicated in electronics and textiles. The 71 per cent import decline over roughly six years is the headline result of that coordinated effort.

Stakeholders and Impact

The primary beneficiaries are domestic toy manufacturers and MSMEs, many of which are clustered in hubs such as Delhi-NCR, Mumbai, and emerging production centres in Rajasthan and Karnataka. Exporters have gained market access across 153 countries, suggesting product diversification beyond traditional trading partners.

Consumers and retailers stand to benefit from a wider domestic supply base, though sustained competitiveness on price and design quality will determine whether India can challenge established toy-exporting nations in the longer term. Sitharaman explicitly flagged that the $5 billion domestic market projection for 2034 should be a floor, not a ceiling, for industry ambition.

What's Next

The Finance Minister's call for 'a significantly larger share of the expanding global market' signals that further policy support — potentially through upcoming Union Budget allocations or trade promotion measures — may be on the table. Industry observers will watch for any new production-linked incentives or export facilitation schemes targeting the toy sector specifically.

With the global toy market itself expanding, India's ability to move up the value chain from basic to premium and tech-integrated toys will be a key determinant of whether the sector's growth trajectory is sustained beyond the current decade.