India’s toy industry has undergone a significant transformation, evolving into a rapidly expanding manufacturing and export sector. Government data reveals that toy exports surged from $152.7 million in 2017-18 to $384.7 million in 2025-26, indicating a remarkable growth of over 151.9 percent. This growth is attributed to a blend of robust domestic demand, policy backing, traditional craftsmanship, and the increasing global recognition of Indian-made toys.
The most substantial increase was observed in electronic and non-electronic toys (HSN 9503), with exports escalating by nearly 160 percent from $77.35 million in 2017-18 to $200.89 million in 2025-26. Notably, the United States emerged as the primary market, witnessing a more than fourfold increase in exports to approximately $111.9 million. Other significant export destinations included the UK, Poland, the Netherlands, and Germany.
Furthermore, exports of video game consoles and related products (HSN 9504) nearly tripled to $46.75 million during the same period, while exports of festive and entertainment articles (HSN 9505) surged by almost 130 percent to $137.03 million. India’s competitiveness on the import front also improved significantly, with imports of traditional and educational toys decreasing by 66 percent over the analyzed period. This reduction has bolstered domestic manufacturing and lessened reliance on foreign supplies.
In 2025-26, India achieved a trade surplus of $152 million across major toy categories, a notable shift from the trade deficit of $213 million recorded in 2017-18. The government highlights that the toy sector is emerging as a crucial contributor to manufacturing, employment, and entrepreneurship, offering livelihood opportunities to artisans, manufacturers, traders, and small businesses nationwide. Employment in the games and toys sector (NIC Code 324) more than doubled from 8,685 in 2018-19 to 17,693 in 2023-24, underscoring the industry’s growing economic significance.
The government attributes this sectoral growth to a series of policy interventions, including the National Action Plan for Toys (NAPT) launched in 2020. The NAPT aims to promote toys rooted in Indian culture and values, boost local manufacturing, and enhance quality standards. A pivotal reform under this plan was the enforcement of the Quality Control Order (QCO), mandating Bureau of Indian Standards (BIS) certification for both domestic and foreign toy manufacturers. As of May 2026, BIS had issued 1,786 licenses to domestic manufacturers and 56 licenses to foreign manufacturers to ensure toy safety compliance.
