Toy Industry Boom in India

The Indian toys market reached a value of US $1.35 billion in 2021.The toy market is projected to reach US $2.73 billion by 2027, showing a CAGR of 12.6% during 2022-2027.According to a FICCI-KPMG report, the Indian toy market, which is currently estimated at $1 billion, has the potential to double itself by 2025.There is high growth potential for India in exports of wood toys and board games in the US, EU and Middle East among other markets.

The central government stated that the import of toys in India has decreased by 70% and exports increased by 61% in the last three years. The positive outcomes are credited to the Make in India initiative.

According to Invest India, the toy industry in India is estimated to be $1.5 bn i.e 0.5% of the global market share. Most of the toy manufacturers are located in NCR, Maharashtra, Karnataka, Tamil Nadu and central Indian states.The 90% market of the toy sector is unorganised and over 4,000 toy industry units are from the MSME sector. It was projected that the Indian toy industry has the potential to grow to $2-3 bn by 2024.

India is projected to target a 2% share of global exports by 2025. The country has immense potential to export plastic toys and board games to countries in Europe, middle-east and the US, reveals a report ‘State of play: India’s toy story- Unboxing fun and beyond’.

The report also stated that “Toys have been an integral part of Indian culture and heritage. While the desire to play is as unabated today as ever before, the global toy industry has come a long way. The nature and techniques of play are fast evolving, keeping pace with changes in technology and market demands.”

What did government do to help the industry?

The government has taken several steps to promote manufacturing in the country including prohibiting certain Chinese products. The local manufacturers had to compete with Chinese toys but phasing out helped local manufacturers to grow.increasing the import duty on Chinese toys by 300 per cent and secondly making the BIS (Bureau of Indian Standards) tag mandatory for toys helped the industry a lot.

Global toy market stands at USD 103.96 Billion,

China is the top toy-producing country in the world followed by the US, Japan, Germany and India.In 2021, the global toy market was valued at USD 103. 96 Billion, as per the “Global Toy Market (2022 Edition).The growing demand for education-based and strategy-based toys is leading to the growth of the industry. Technology is playing a significant role in the development of the industry. The use of Artificial Intelligence and 3D cannot be ignored in today’s time.

Back to top button