India’s toy industry has undergone a remarkable transformation over the past few years, with toy exports rising by 89.1% and imports declining by 37.5%, reflecting the growing strength of domestic manufacturing and the success of government initiatives aimed at improving quality, safety and global competitiveness.
According to information shared by Minister of State for Commerce and Industry Jitin Prasada in a written reply in the Lok Sabha on Tuesday, India’s toy exports increased from USD 203.5 million in FY 2018-19 to USD 384.7 million in FY 2025-26, while imports fell from USD 371.7 million to USD 232.3 million during the same period. The country has also emerged as a net exporter of toys, with major export destinations including the United States, the United Kingdom, the Netherlands and Germany.
The announcement comes against the backdrop of the 17th Toy Biz International B2B Exhibition, held from July 4 to 7 at Bharat Mandapam in New Delhi. Organized by the Toy Association of India, the exhibition brought together 400 Indian toy brands, around 100 international buyers from 40 countries and nearly 30,000 business visitors. The event served as a platform for manufacturers, wholesalers, retailers, distributors, institutional buyers and e-commerce companies to explore business partnerships and expand domestic as well as international market opportunities.
The Commerce and Industry Ministry said the industry’s turnaround follows a series of policy interventions introduced after concerns over the quality and safety of imported toys. In FY 2018-19, India imported toys worth USD 371.7 million, many of which were found to be unsafe, substandard and counterfeit. A mystery shopping exercise conducted in 2019 revealed that only 33% of toys available in the domestic market met the prescribed Bureau of Indian Standards (BIS) norms.
To address these issues, the government introduced a comprehensive National Action Plan for Toys (NAPT) involving 14 ministries and departments and comprising 21 action points. The plan focuses on promoting toy design based on Indian culture and values, encouraging toy-based learning, supporting innovation through hackathons and toy fairs, strengthening quality monitoring, restricting imports of substandard toys, promoting indigenous toy clusters and boosting domestic manufacturing.
The government also raised the Basic Customs Duty on toys from 20% to 60% in February 2020, followed by a further increase to 70% in 2023. In the Union Budget for FY 2025-26, the customs duty on parts of electronic toys was revised to 20%.
A Quality Control Order for toys, issued in February 2020 and implemented from January 1, 2021, has also played a key role in improving product standards. More than 1,800 domestic manufacturers and over 50 foreign manufacturers have received BIS licences to use the BIS Standard Mark for toys that comply with Indian safety standards.
The Ministry of Education has also promoted toy-based learning under the National Education Policy 2020. The National Council of Educational Research and Training (NCERT) has published a handbook on “Toy-Based Pedagogy” to encourage the use of indigenous toys and games in classrooms to make learning more engaging for children.
To strengthen manufacturing capabilities, the Ministry of MSME has approved 18 toy clusters under the Scheme of Funds for the Regeneration of Traditional Industries (SFURTI), while the Ministry of Textiles is providing design and tooling support to 40 toy clusters. More than 700 toy startups have also been recognized under the Startup India initiative.
The Ministry said over 2,200 toy exporters have benefited from the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme. In addition, India’s free trade agreements with the UAE, Australia, the European Free Trade Association (EFTA), Oman, New Zealand and the United Kingdom provide zero-duty market access for Indian toy exports, further enhancing the sector’s export potential.
Several promotional initiatives, including Toycathon competitions and toy fairs, have also been launched to encourage innovation and showcase indigenous products.
These measures have significantly improved product quality. According to a BIS survey conducted in 2025, 95% of toy samples conformed to prescribed quality standards, a substantial improvement from just 33% recorded in 2019.
While the Ministry clarified that India does not currently have a dedicated national toy policy, it said the combined impact of quality regulations, tariff measures, manufacturing support and export promotion initiatives has strengthened the domestic toy ecosystem and positioned India as an increasingly competitive player in the global toy market.
