India's toy industry has experienced significant growth and transformation over the past five years. According to a report by Punjab National Bank (PNB), the industry is poised to capture a larger share of the global toy market, which is projected to reach USD 179.4 billion by 2032. The Indian toy market was valued at approximately USD 1.5 billion in 2023.

Several factors have contributed to this growth trajectory:

• Policy Support: The Union Budget 2025-26 introduced the National Action Plan for Toys, aiming to boost cluster development, enhance skills, and establish a robust manufacturing ecosystem. This initiative focuses on producing high-quality, innovative, and sustainable toys under the 'Made in India' brand.
• Quality Control Measures: The implementation of the Quality Control Order (QCO) in 2020 enforced stricter quality standards for toys, ensuring that products meet international benchmarks.
• Import Duty Revisions: The government increased import duties from 20% to 60% in February 2020 and further to 70% in March 2023. These measures have significantly reduced toy imports, promoting domestic manufacturing.

The impact of these policies is evident in trade statistics. India's toy imports plummeted from USD 304 million in FY2018-19 to just USD 65 million in FY2023-24, marking a 79% decline. Conversely, exports grew by 40% during the same period, rising from USD 109 million to USD 152 million. As a result, India has transitioned to a net exporter of toys.

This growth not only bolsters the economy but also aligns with the broader vision of positioning India as a global manufacturing hub. The emphasis on self-reliance, quality enhancement, and a strong manufacturing ecosystem indicates a promising future for India's toy industry on the global stage.