1. Introduction

Strong domestic demand, supported by a young population, rising disposable incomes and increasing preference for educational toys, has created significant opportunities for growth.

Recognising the sector’s economic and cultural importance, the Government of India has introduced several initiatives to promote indigenous toy manufacturing, improve quality standards and reduce dependence on imports. Programmes such as the National Action Plan for Toys, One District One Product (ODOP), Toycathon and support for GI-tagged products have encouraged innovation while preserving traditional craftsmanship. These efforts have strengthened domestic production, expanded exports and generated employment, positioning India as an emerging global hub for quality toys.

2. Origin and Intent

India’s toy-making tradition dates back nearly 5,000 years to the Indus Valley Civilisation. Archaeological excavations at Harappa and Mohenjo-Daro have uncovered clay carts, animal figurines, dolls and other handcrafted toys that reflect the creativity and craftsmanship of ancient Indian artisans. Over the centuries, different regions of the country developed distinctive toy-making traditions using wood, clay, bamboo, papier-mâché and natural materials. Many toys depict stories from the Ramayana, Mahabharata and local folklore, making them an important part of India’s cultural heritage.

Today, the government’s objective is to preserve this traditional legacy while building a globally competitive toy manufacturing ecosystem. The National Action Plan for Toys aims to strengthen manufacturing, design, innovation, quality assurance, skill development and exports by bringing together multiple ministries and stakeholders. The broader intent is to promote safe, sustainable and high-quality Indian toys while creating employment opportunities for artisans, MSMEs and startups.

3. Key Amendments

To strengthen India’s toy industry and enhance its global competitiveness, the Government has introduced several policy reforms and promotional initiatives in recent years.

• National Action Plan for Toys: The government launched this multi-ministerial initiative to develop the entire toy value chain by promoting manufacturing, innovation, skill development, exports and branding of Indian toys.
• Mandatory BIS Quality Standards: Since 2021, toys sold in India must comply with the Bureau of Indian Standards (BIS) Quality Control Order, ensuring higher safety and quality standards while discouraging the sale of substandard products.
• Promotion of Traditional Toys: Initiatives such as One District One Product (ODOP), Geographical Indication (GI) tagging and Districts as Export Hubs are helping traditional toy makers improve branding, market access and export opportunities.
• Innovation and Product Development: Programmes including Toycathon, e-Toycathon and MeitY’s e-Toys Lab encourage startups, students and manufacturers to develop innovative, educational and technology-enabled toys suited to modern consumer needs.
• Digital and Market Expansion: The rapid growth of e-commerce platforms has enabled manufacturers, artisans and MSMEs to access larger domestic and international markets. Rising demand for educational, STEM-based and smart toys integrated with Artificial Intelligence (AI), Augmented Reality (AR) and Virtual Reality (VR) is further driving industry growth.

4. Impact

India’s toy industry has recorded impressive growth in manufacturing and exports over the past decade. According to official government data, exports of toys under HSN Codes 9503, 9504 and 9505 increased from US$152.7 million in 2017–18 to approximately US$384.7 million in 2025–26, reflecting growth of more than 151%.

Electronic and non-electronic toys (HSN 9503) recorded the strongest performance, with exports increasing from US$77.35 million to US$200.89 million during the same period. The United States has emerged as India’s largest export destination, with exports rising from US$26.7 million to nearly US$111.9 million. Other major export markets include the United Kingdom, Germany, the Netherlands and Poland.

Government support for domestic manufacturing, quality certification and export promotion has also encouraged investment in the sector while creating employment opportunities for artisans, MSMEs, designers and technology startups. These developments have strengthened India’s position in the global toy value chain and reduced dependence on imported toys.

5. Conclusion

India’s toy industry is steadily evolving into a globally competitive manufacturing sector by successfully combining traditional craftsmanship with modern technology and innovation. Government initiatives such as the National Action Plan for Toys, Toycathon, MeitY’s e-Toys Lab, ODOP, GI tagging and Districts as Export Hubs are strengthening manufacturing capacity, product design, quality standards and export readiness.

At the same time, increasing demand for educational and sustainable toys, wider adoption of digital technologies and expanding global markets are creating new opportunities for Indian manufacturers. With continued policy support and investment in innovation and quality, the toy industry is well positioned to contribute to India’s manufacturing growth, employment generation and export expansion while preserving the country’s rich cultural heritage.