There was a time, not too long ago, when the average Indian toy box reflected a quiet yet unmistakable dependence on imports. Plastic cars stamped “Made in China” and battery-operated dolls with unfamiliar accents dominated markets across urban and rural India. Puzzles and board games imported in bulk formed a large part of childhood experiences across the country. Despite a rich legacy of craftsmanship and storytelling, India had gradually slipped into the role of a passive consumer in a global toy economy dominated by a handful of manufacturing giants.
For decades, the imbalance went largely unquestioned. Imported toys were cheaper, widely available and often perceived as superior in quality. Domestic manufacturing struggled to keep pace with mass production capabilities abroad. The result was a market where Indian producers operated at the margins, while foreign products occupied shelves across the country.
That story, however, has changed significantly over the past decade.
Under Prime Minister Narendra Modi, India’s toy industry has undergone a transformation that policymakers now cite as a model for sectoral revival. What was once an import-heavy market has steadily moved toward domestic manufacturing and, increasingly, exports. The shift has not been incidental or organic. It has been deliberate—driven by policy interventions, regulatory changes and a broader reimagining of how even a seemingly small sector can contribute to national economic priorities.
From Import Dependence to Policy Intervention
Until the late 2010s, India’s toy market remained overwhelmingly dependent on imports. Industry estimates suggested that nearly 80–90% of toys sold in the country were sourced from abroad, with China accounting for the majority share. These products dominated not only urban retail chains but also small local markets, making them accessible across income groups.
In fact, India’s toy imports stood at approximately $371 million in FY2018–19, reflecting the scale of dependence on foreign manufacturers. By contrast, exports during the same period were significantly lower, highlighting the imbalance in trade.
Domestic manufacturers, in contrast, faced structural disadvantages. The sector was highly fragmented, with a large number of small and unorganised units operating without scale or standardisation. Many lacked access to modern machinery, quality testing facilities and efficient supply chains. As a result, competing with low-cost imports became increasingly difficult.
Traditional toy makers, who had once thrived on regional crafts and local demand, were among the hardest hit. Artisans producing wooden, clay, or cloth-based toys saw declining sales as consumers shifted toward mass-produced plastic alternatives. Over time, several of these crafts risked fading into obscurity.
The turning point came when the government began to treat the toy sector as more than just a peripheral industry. A series of policy interventions were introduced with the aim of reducing import dependence and strengthening domestic manufacturing. Import duties on toys were increased, making foreign products less competitive in the Indian market. At the same time, stricter quality control norms were enforced through the Bureau of Indian Standards, ensuring that only certified products could be sold.
These measures had a dual effect. They curtailed the influx of low-quality imports while simultaneously encouraging domestic manufacturers to improve standards. By raising the entry barrier for foreign products, the government created space for Indian producers to expand their presence.
Manufacturing Growth and Cultural Reclaiming
As policy measures began to take effect, domestic manufacturing witnessed a gradual but steady revival. Production units expanded, new players entered the market and existing manufacturers scaled up operations. States such as Karnataka, Tamil Nadu, Uttar Pradesh, and Gujarat emerged as key hubs for toy production.
The establishment of dedicated toy parks further accelerated this growth. Facilities in regions like Koppal and Greater Noida provided infrastructure support, including manufacturing units, testing laboratories and logistics networks. These clusters enabled manufacturers to operate more efficiently and competitively.
Small and medium enterprises played a crucial role in this transformation. With improved access to credit and clearer regulatory frameworks, many SMEs were able to expand production and explore new markets. The shift also encouraged innovation, as manufacturers began experimenting with designs, materials and production techniques.
Global companies, too, started taking note of India’s evolving toy ecosystem. Some shifted parts of their manufacturing operations to India, attracted by policy incentives and a growing domestic market. This contributed to the development of a more integrated supply chain, further strengthening the sector.
At the same time, the transformation was not limited to industrial growth. There was a parallel effort to revive traditional toy-making practices rooted in Indian culture. The focus shifted toward promoting toys that reflect Indian history, mythology, science, and everyday life. This approach aimed to differentiate Indian products in both domestic and international markets.
Campaigns promoting local products encouraged consumers to support indigenous brands. Traditional crafts such as Channapatna wooden toys from Karnataka, Kondapalli figurines from Andhra Pradesh and Etikoppaka lacquerware received renewed attention. Artisans were provided with training, financial support and access to digital platforms, enabling them to reach wider markets.
This cultural dimension added depth to the industry’s transformation. Toys were no longer seen merely as consumer goods but as carriers of heritage and identity. The revival of traditional crafts not only preserved cultural practices but also created new economic opportunities for artisan communities.
Rise of Exports and Integration with Education
One of the most notable outcomes of this transformation has been the rise in toy exports. As domestic manufacturing improved in quality and scale, Indian toys began finding acceptance in international markets.
India’s toy exports rose sharply from around $109 million in FY 2014–15 to over $326 million in FY 2022–23, marking a growth of nearly 200% over less than a decade. At the same time, imports declined drastically from $332.55 million in FY 2014–15 to nearly $110 million in FY2022–23, indicating a substantial reduction in dependence on foreign products.
This shift represents a dramatic reversal in trade dynamics, with India moving from being a net importer to increasingly becoming a competitive exporter in certain toy segments. Exports grew steadily, even as imports declined, indicating a structural shift in the industry’s orientation.
Indian manufacturers started catering to global demand by adhering to international standards and certifications. Packaging and branding improved, making products more appealing to overseas buyers. Eco-friendly toys, in particular, gained traction, as global consumers increasingly prioritised sustainability.
The export push marked a significant departure from the past, when India was primarily a consumer in the global toy market. Today, it is gradually establishing itself as a producer capable of competing on quality and innovation.
Another important factor driving the industry’s growth has been its integration with the education sector. The National Education Policy 2020 emphasised experiential learning, creating demand for educational tools that go beyond traditional textbooks. Toys emerged as an effective medium for teaching concepts in science, mathematics and problem-solving.
Startups entered the space, developing educational kits designed to enhance learning outcomes. These products combined play with pedagogy, making them attractive to both schools and parents. The government also encouraged innovation through initiatives such as toy design competitions and hackathons.
Educational institutions began offering courses in toy design and development, signalling the emergence of a new professional domain. This integration of education and industry not only expanded the market but also positioned toys as tools for skill development and creativity.
Challenges, Global Context and the Road Ahead
Despite the progress achieved over the past decade, the industry continues to face several challenges. Small manufacturers often struggle with access to raw materials and fluctuating demand. Ensuring consistent quality across a large number of production units remains a complex task.
India also faces competition from established manufacturing hubs that benefit from economies of scale and advanced supply chains. While domestic production has increased, achieving global competitiveness requires sustained investment in technology and infrastructure.
Retailers and consumers are still adjusting to the changing market landscape. The decline in cheap imports has led to shifts in pricing, which can influence purchasing decisions. Balancing affordability with quality remains an ongoing challenge for manufacturers.
The global context presents both opportunities and uncertainties. Supply chain disruptions and geopolitical tensions have prompted companies to diversify manufacturing bases. India has positioned itself as a viable alternative, supported by a large workforce and improving infrastructure. However, maintaining this momentum will require consistent policy support and industry collaboration.
At the ground level, the transformation is evident in the experiences of entrepreneurs and artisans. Manufacturing clusters have created employment opportunities, while traditional crafts have found renewed relevance. Startups are introducing innovative products that cater to both domestic and international markets. These developments highlight the sector’s growing dynamism.
Looking ahead, the focus will need to remain on strengthening the ecosystem. Investments in infrastructure, skill development and research will be critical. There is also an opportunity to position India as a leader in sustainable toy manufacturing, given the global shift toward environmentally friendly products.
Ultimately, the transformation of India’s toy industry represents more than a change in market dynamics. It reflects a broader shift in economic thinking, where even smaller sectors are recognised for their potential contribution to national development.
For decades, India imported its toys and relied on external markets for supply. Today, it is steadily building its own capabilities, expanding its presence in global trade and redefining its role in the industry.
In that transition lies a larger story of change—one that underscores the possibilities of strategic intervention, cultural revival and sustained policy focus in reshaping an industry.
