India can take much larger share of projected USD 179 billion global toy market by 2032: Sitharaman
Trade pacts with Australia and UAE opening new avenues for Indian toy exporters
Union Finance Minister Nirmala Sitharaman on Tuesday said that India has the potential to take a much larger share of the projected USD 179 billion global toy market by 2032, emphasising the industry’s transformation during the last five to six years.
Speaking at the Toy Association of India’s 17th Toy Biz International B2B Expo, Sitharaman urged the Indian toy industry to set more aggressive export targets, rather than limiting to the estimated USD 5 billion market by 2034.
“India’s toy exports to 153 countries reached USD 186 million in FY 2025–2026.
Similarly, between 2019 and 2026, imports of toys, which were formerly concentrated from a single country and comprised many inexpensive, harmful products, decreased by 71 per cent,” she said.
The transformation was attributed by the Minister to specific policy initiatives. To stop the dumping of risky imports, the baseline customs tax on toys was increased from 20 per cent to 60 per cent in February 2020. Additionally, the Bureau of Indian Standards stepped up its enforcement at marketplaces and airports.
She pointed out that the 2024 Budget revised the National Action Plan for Toys, which combines 14 essential ministries for cluster growth, skilling and creating a manufacturing ecosystem that is competitive worldwide.
Toy clusters with infrastructure, design, and market access support have been established in Karnataka, Rajasthan, Tamil Nadu, Uttar Pradesh and Andhra Pradesh under the MSME SPURTI initiative.
Additionally, trade agreements have created new opportunities. Indian toys are now duty-free in these markets due to the India-Australia ECTA and India-UAE CEPA. While small manufacturers can obtain loans under PM Mudra and CGTMSE, exporters can also profit from the RoDTEP program.
Furthermore, Sitharaman highlighted branding and creativity. She mentioned MeitY’s E-Toy-Cathon as an incubator for AR games, coding kits, and domestic electronic toys. Small-town craftsmen in India are able to sell directly to consumers due to digital public infrastructure like ONDC, Account Aggregator and UPI.
“Manufacturing is important but branding creates value,” she continued, urging more emphasis on branding. Only when your brand is recognisable will it have enduring worth.
