Domestic Toy Industry on a Growth Spree - News

Experiencing a drastic transformation, the toy industry in India is evolving and gaining prominence globally by becoming a net exporter. Between FY15 and FY23, toy exports in the country surged by 239 percent, and imports declined by 52 percent. This change was driven by factors like the Bureau of Indian Standards (BIS) approval for toy sales, protective policies, and a 70 percent rise in customs duties. 

These developments have spurred domestic production and attracted global brands like Hasbro Inc, Mattel, and Spin Master to increase their sourcing from India. R Jeswant, CEO, Funskool India Ltd, noted the significant increase in Indian production and many companies establishing bases in the country. Similarly, Pawan Gupta, Owner, R P Associates, highlighted the shift of buyers from China to countries like India, with major manufacturers like Dream Plast Pvt Ltd and Incas Global Ltd recognizing India’s potential as a manufacturing hub. 

However, challenges persist for micro, small, and medium enterprises (MSMEs) in the industry as the sector is still not manufacture-friendly. The Toy Association of India (TAI) advocates for relaxing BIS rules to support these enterprises, with Ajay Aggarwal, President, TAI, emphasizing Gujarat’s emergence as a toy manufacturing hub. 

Market research firm, IMARC Services Pvt Ltd, projects a bright future for India’s toy industry, expecting it to reach US$ 4.4 bn by 2032, reflecting a robust growth rate of 10.6 percent from 2023.