Indian toy industry sees 239% surge in exports and 52% drop in imports
NEW DELHI : The Indian toy industry has experienced remarkable growth, with a 52% decline in imports and a striking 239% increase in exports during the financial year 2022-23 (FY23) compared to FY15. This surge underscores a major leap in the quality and global competitiveness of Indian-made toys.
According to a comprehensive case study titled “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), the transformation has been catalyzed by strategic government efforts to create a more conducive manufacturing ecosystem.
The report reveals that from 2014 to 2020, India’s toy industry witnessed a steady rise in its manufacturing base, with the number of production units doubling during this period. A notable reduction in reliance on imported materials, dropping from 33% to just 12%, reflects India’s growing self-reliance. The sector’s gross sales value also saw a healthy compounded annual growth rate (CAGR) of 10%, alongside a significant boost in labor productivity.
The study highlights India’s emerging position as a key player in the global toy market, driven by its integration into the global toy value chain. The country’s zero-duty market access for domestically manufactured toys in markets such as the United Arab Emirates (UAE) and Australia further accelerates its export potential.
However, the report also emphasizes that in order to challenge established toy manufacturing giants like China and Vietnam, India must continue its collaborative efforts between the government and the private sector. Key areas for growth include advancements in technology, embracing e-commerce, and building global partnerships to strengthen exports.
Additionally, fostering cultural diversity in toy designs, investing in brand-building initiatives, and engaging directly with educators and parents will help create a stronger connection with children across the world.
The rise of India as a hub for quality toy manufacturing serves as a testament to the success of targeted policy interventions and the tireless work of local manufacturers. With the right investments in innovation and marketing, India is poised to carve out a significant niche in the global toy industry.