The Indian toy industry is poised for growth, with the government’s National Action Plan for Toys, outlined in Budget 2025, aiming to make India a global toy manufacturing powerhouse. Despite having a market size of $1.7 billion in 2023, the country accounts for less than 1% of the global toy industry, which is valued at approximately $129.5 billion. The industry is projected to reach $4.4 billion by 2032, growing at a CAGR of 10.9%. To achieve this vision, India must overcome significant challenges related to infrastructure, sustainability, and international export standards.

Bharat is home to several traditional and modern toy manufacturing clusters, each with unique craftsmanship and materials. These clusters are being developed and modernised under NAPT.

Hon’ble Prime Minister Shri Narendra Modi’s “Mann ki Baat” address in August 2020 aimed to establish India as a global toy manufacturing hub. To achieve this, the government has implemented several initiatives, including the formulation of a National Action Plan for Toys (NAPT) to promote designing toys, using toys as learning resources, monitoring quality, and promoting indigenous toy clusters. This has led to a significant growth in the Indian toy industry in FY 2022-23, with a 52% decline in imports and a 239% rise in exports.

To further enhance India’s position in the global toy supply chain, the Department of Public Information and Technology (DPIIT) workshop last year to help toy manufacturers understand the nuances of online selling and market access.

The government’s initiatives such as increasing Basic Customs Duty (BCD) on toys, mandating sample testing of import consignments, issuing a Quality Control Order (QCO), and granting licenses to micro-sale units manufacturing toys without testing facilities have increase ground support.

The Ministry of MSME is supporting 19 toy clusters under the Scheme of Funds for the Regeneration of Traditional Industries (SFURTI), and the Ministry of Textiles is providing designing and tooling support to 26 toy clusters.

Under the Scheme of Fund for Regeneration of Traditional Industries (SFURTI) of Ministry of Micro, Small & Medium Enterprises (MSME), 19 toy clusters have been approved. Out of these 19 clusters, 9 are approved in Madhya Pradesh, 3 in Rajasthan, 2 in Uttar Pradesh, 2 in Karnataka and 1 each in Andhra Pradesh, Maharashtra and Tamil Nadu. These clusters are Kondapalli Wooden Toy Cluster, Channapatna Lacware Toys Cluster , Sagara Woodcrafts Cluster, Toy Cluster Budni, Soft Toys and Sportswear Cluster, Bamboo based Indigenous Toys Cluster, Traditional Indian Bamboo and Wood based toys cluster, Wood based traditional Indian Toys and Associated Fabric Based Accessories Cluster, Bamboo Craft and Bamboo Toys Cluster, Soft Toys Cluster, Indore Mahila Garment Leather Toys and Jute Product Cluster, Wood Based Toys Cluster, Plush Toys Cluster, Wood Craft Cluster, Traditional Indian Fabric based Toys Cluster, Deep Hast Shilp Wooden Toys Cluster, Palm Leaves Toys and Leather Products Cluster, Wooden Toys and Carving Cluster and Lucknow Soft Toys Cluster. These clusters propose to benefit 11,749 artisans with a Government of India assistance of Rs. 55.65 crore.

The Ministry of Textiles has identified 13 clusters across the country with a view for the overall development of cluster artisans. These clusters are located at Channapatna, Kinhal, Kondapalli, Etikopaka, Nirmal, Tanjore, Cudappah, Varanasi Chitrakoot, Jaipur, Dhubri, Bishnupur and Indore.

Emerging Industrial Toy Clusters

The government is also promoting modern industrial toy clusters with advanced manufacturing capabilities. There are certain challenges, including dependence on imports, lack of advanced indigenous manufacturing technology, sustainability, and workforce training. Despite a 70% drop in toy imports in 2021, the industry still relies heavily on traditional methods, with low adoption of automation, AI, and 3D printing. Global toy giants like Mattel and LEGO invest heavily in smart manufacturing, setting high benchmarks for Indian manufacturers. The global eco-friendly toys market is expected to grow, and Indian manufacturers need to adopt biodegradable packaging, non-toxic paints, and sustainable raw materials.

Skill India initiatives aiming to upskill 200,000 workers in toy manufacturing by 2030. Geographical Indication (GI)-tagged traditional toys account for less than 10% of total toy sales due to limited market linkages and inadequate branding. The global toy packaging market is valued at $32.5 billion, and Indian manufacturers must comply with ASTM F963 (USA) and EN71 (Europe) standards to boost exports.

The challenge of India’s toy industry is a dedicated R&D investments, limiting innovation in design and functionality. Government incentives and collaborations with academic institutions can drive innovation in educational and sustainable toys.

Sustainable and Eco-Friendly Toy Manufacturing

To enhance competitiveness, sustainable practices must be integrated into toy manufacturing:

l Biodegradable & Recycled Materials: Using recycled plastic, bamboo, and organic dyes can minimise environmental impact.

l Minimalist and Zero-Waste Packaging: Compact, recyclable packaging reduces waste and aligns with global sustainability trends.

l Eco-Friendly Supply Chain: Sustainable sourcing of raw materials ensures ethical production and reduces carbon footprints.

Panchgavya as a Key Raw Material for Toys and Packaging

Panchgavya, derived from five cow-based products (milk, curd, ghee, dung, and urine), can play a significant role in the toy industry by offering sustainable and eco-friendly raw materials. Panchgavya-based natural paints provide a non-toxic alternative to synthetic dyes, ensuring child-safe toys. Cow dung can be molded into biodegradable toy components, reducing plastic dependency. Additionally, Panchgavya-infused paper and packaging materials enhance durability while promoting eco-conscious branding. Utilising these organic resources can support the traditional toy industry, boost rural employment, and position India as a leader in sustainable toy manufacturing aligned with global environmental standards.

Unlocking the Potential of Bharat’s Traditional Toys

India’s rich heritage of handcrafted toys presents a unique selling proposition. Traditional toys contribute to children’s skill development by enhancing creativity, motor skills, and cognitive learning. Expanding international market access for these toys requires:

l Better Market Linkages: The government plans to establish 10 toy clusters by 2027 to support GI-tagged and handmade toy industries.

l Government Support & Policy Interventions: Incentives such as a $200 million production-linked incentive (PLI) scheme can boost local artisan production.

l Integration with Education: The educational toy segment in India is projected to grow at a CAGR of 14.2%, and STEM-based adaptations of traditional toys can enhance their appeal.

Road Ahead: Strengthening Bharat’s Toy Industry

With the National Action Plan for Toys and dedicated efforts in sustainability, skill development, and export promotion, India has the potential to emerge as a global toy manufacturing hub. By addressing challenges, embracing innovation, and leveraging its traditional toy heritage, the country can create a globally recognised ‘Made in India’ brand that is sustainable, biodegradable, high-quality, and culturally distinctive.

(The writer is a Creative Economy Expert)