Beyond $5 Billion: Sitharaman Challenges India’s Toy Industry to Capture 25% of Global Market

• Global toy market projected at $179 billion by 2032.

• India’s toy market expected to reach $5 billion by 2034.

• Imports fell 71% in FY26 compared to 2019.

• Exports stood at $186 million in FY26.

• National Action Plan aims to build clusters and boost “Made in India” toys.

India’s toy industry has been given an ambitious new target: aim for a quarter of the global market rather than settling for modest domestic projections.

Addressing the 17th Toy Biz International B2B Expo 2026 in New Delhi, Finance Minister Nirmala Sitharaman urged industry players to think bigger. While India’s toy market is currently projected to grow to $5 billion by 2034, she pointed out that the global toy industry is expected to touch $179 billion by 2032. In that context, she argued, India’s ambitions should be significantly higher.

Calling for a “reality check,” the minister said that while $5 billion is a respectable milestone, India has the capability to target at least 25% of the projected global market instead of remaining confined to incremental growth.

Policy Push to Strengthen Domestic Manufacturing

Over the past six years, the government has rolled out a series of measures to bolster local toy manufacturing and reduce dependence on imports. In 2020, the basic customs duty on toys was increased sharply from 20% to 60%, a move aimed at discouraging dumping and encouraging domestic production.

Alongside tariff adjustments, regulatory oversight was tightened. The Bureau of Indian Standards (BIS) intensified enforcement to ensure that only safe and certified toys enter the Indian market. According to Sitharaman, stricter checks at ports and retail outlets sent a clear message that India prioritises quality and child safety.

These measures have yielded visible results. Toy imports declined by 71% in FY26 compared with 2019 levels. At the same time, exports reached $186 million in FY26, reflecting gradual progress in expanding India’s footprint abroad.

Trade Agreements Offer Fresh Momentum

The finance minister also highlighted the benefits of India’s trade agreements with the United Arab Emirates and Australia, which grant duty-free access to Indian toys. These agreements are expected to create new export opportunities and provide additional impetus to domestic manufacturers seeking to scale up internationally.

By leveraging preferential market access and focusing on quality improvements, India could position itself as a competitive supplier in global toy markets.

National Action Plan for Toys

In the FY26 Budget, the government announced a National Action Plan for Toys, designed to transform India into a global toy manufacturing hub. The initiative focuses on building manufacturing clusters, upgrading skills and strengthening the broader production ecosystem.

The objective is not merely to increase volumes but to promote high-quality, innovative and sustainable toys that reflect the “Made in India” identity. The plan envisions collaboration across departments to streamline processes and create a supportive framework for manufacturers.

Sitharaman emphasised that the strategy goes beyond production targets. It aims to integrate policy support, infrastructure development and skill enhancement to facilitate every stage of toy manufacturing—from design and sourcing to quality control and exports.

From Import Reduction to Global Expansion

The government’s approach reflects a broader shift in strategy: from curbing imports to proactively expanding global presence. While import reduction has strengthened domestic industry resilience, the next phase requires scaling up exports and capturing international market share.

The challenge lies in competing with established global players while maintaining safety standards, innovation and affordability. However, policymakers appear confident that the combination of protective measures, quality enforcement and strategic trade agreements provides a solid foundation.

With the global toy market projected to reach $179 billion within the next decade, India’s current $5 billion target may only scratch the surface of its potential. The government’s message to the industry is clear: think globally, invest in quality and aim far beyond incremental growth.

Whether India can convert policy support into a significant share of the global toy market will depend on sustained collaboration between manufacturers, regulators and exporters. But the ambition has now been clearly articulated—India’s toy sector is being encouraged to move from protection-led growth to global leadership.