India's Toy Industry Set to Seize a Greater Share of Global Market: Report
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Synopsis
India's toy industry is on track to capture a larger share of the global market, projected to reach $179.4 billion by 2032, driven by government support, technological advancements, and significant growth in exports.
Key Takeaways
- India's toy market is projected to grow to $179.4 billion by 2032.
- Toy imports fell by 79%, while exports rose by 40%.
- The National Action Plan aims to enhance domestic manufacturing.
- Quality Control Order implemented in 2020 for stricter standards.
- Market size expected to reach $4 billion with 10.5% growth.
New Delhi, Feb 28 (NationPress) India's rapidly expanding toy sector is set to secure a more substantial portion of the global toy market, projected to hit $179.4 billion by 2032, as per a report from Punjab National Bank (PNB).
The report indicates that the growth in the toy sector is fueled by advancements in skill development, technology integration, and enhancements in product quality, along with considerable backing from the government.
This trend is mirrored in trade statistics, revealing a remarkable 79 percent drop in India's toy imports, plummeting from $304 million in FY2018-19 to just $65 million in FY2023-24. Conversely, exports have surged by 40 percent, increasing from $109 million to $152 million during the same timeframe, rendering India a net exporter of toys.
Government policies have been pivotal in bolstering domestic manufacturing recently. The introduction of the National Action Plan for Toys in the Union Budget for 2025-26 underscores the sector's critical importance. This action plan is designed to further enhance the toy industry through cluster development, skill enhancement, and the establishment of a robust manufacturing ecosystem for producing high-quality toys under the 'Made in India' label.
The report highlights that the execution of the Quality Control Order (QCO) in 2020 established stricter quality benchmarks for toys. Furthermore, the government escalated import duties from 20 percent to 60 percent in February 2020 and subsequently to 70 percent in March 2023. These initiatives have significantly curtailed toy imports while promoting domestic production.
Current industry estimates put the market size at $1.7 billion, with expectations to reach $4 billion by 2032, reflecting a 10.5 percent annual growth rate.
With ongoing efforts towards self-reliance, quality advancements, and a solid manufacturing ecosystem, India's toy industry is well-positioned for international growth. The expansion of this sector not only fortifies the economy but also aligns with the overarching vision of transforming India into a global manufacturing hub.
The Indian toy industry has broadened its global reach to over 100 countries, including the US, UK, Germany, Netherlands, Denmark, and even China. The next step for toy manufacturers is to effectively utilize online platforms to connect with international consumers, as stated by a senior official from the Department for Promotion of Industry and Internal Trade (DPIIT).
In a strong commitment to fostering a better ecosystem for the toy industry, the Government of India has recognized this sector as one of the champion sectors, with a long-term vision of establishing a global market for 'Made in India' toys. A cohesive strategy is being adopted, breaking down barriers and collaborating with industry stakeholders to enhance the sector's robustness.
