Indian Toy Industry Achieves Remarkable Growth with Record Export Surge and Reduced Imports
In a remarkable shift, the Indian toy industry has emerged as a significant player on the global stage, registering a 52% decline in imports and an extraordinary 239% increase in exports during the financial year 2022-23 (FY23) compared to FY15. This growth marks a dramatic transformation in the quality, competitiveness, and self-reliance of Indian-made toys.
A detailed case study, Success Story of Made in India Toys, conducted by the Indian Institute of Management (IIM) Lucknow at the request of the Department for Promotion of Industry and Internal Trade (DPIIT), attributes this success to targeted government initiatives. These efforts have fostered a favorable manufacturing ecosystem, significantly enhancing the industry’s global appeal.
Between 2014 and 2020, the number of toy production units in India doubled, signaling steady growth in the sector’s manufacturing base. A key achievement has been the reduction in reliance on imported materials, which fell from 33% to just 12%, showcasing India’s increasing self-sufficiency. Additionally, the industry achieved a compounded annual growth rate (CAGR) of 10% in gross sales value and a notable rise in labor productivity, reflecting improvements across the board.
India’s integration into the global toy value chain has positioned it as a rising competitor in international markets. Zero-duty market access for Indian-manufactured toys in key regions like the United Arab Emirates (UAE) and Australia has further fueled export growth. These developments have cemented India’s reputation as a hub for high-quality, culturally diverse toys.
The study underscores the need for continued collaboration between the government and private sector to sustain this momentum. India’s ambitions to challenge established giants like China and Vietnam hinge on leveraging advanced technologies, embracing e-commerce, and forging global partnerships. By enhancing innovation and marketing strategies, the country can strengthen its foothold in the international toy market.
Moreover, the report highlights the importance of integrating cultural elements into toy designs, developing strong branding initiatives, and engaging directly with educators and parents to resonate more deeply with children worldwide.
The Indian toy industry’s dramatic rise serves as a testament to the effectiveness of strategic policy interventions and the determination of local manufacturers. With sustained focus on innovation and global engagement, India is well on its way to securing a prominent place in the global toy industry.
