Context:

India’s toy industry has seen a remarkable turnaround, transitioning from a largely import-dependent sector to a major exporter, supplying toys to 153 countries.

Between FY19 and FY24:

• Exports increased by 40%
• Imports declined by 79%

Key export destinations include the US, UK, Germany, Netherlands, Denmark, and Australia, which together account for over 70% of India’s toy exports.

Toy Industry: Historical Roots

India’s toy-making tradition is ancient, with origins in the Indus Valley Civilization (c. 2500 BCE). Early toys were made from clay, wood, and fabric, often reflecting cultural values, local folklore, and regional art forms.

Notable traditional toy hubs include:

• Channapatna (Karnataka) – known for eco-friendly wooden toys
• Kondapalli (Andhra Pradesh) – known for vibrant figurines

These crafts continue to hold cultural significance and support rural livelihoods.

Evolution of India’s Toy Sector

Present Status of India’s Toy Market

• Market Size (2024): US$ 1.9 billion
• Projected (2033): US$ 4.7 billion (CAGR ~10%)
• Sector Composition:
  • 90% unorganised sector (small & cottage industries)
  • 10% organised sector (rapidly growing)

Drivers of growth:
Urbanisation, rising incomes, digital access, and greater brand awareness.

Government Initiatives to Boost Toy Manufacturing

These measures aim to position India as a global toy manufacturing hub.

Key Challenges

1. Market Fragmentation:
   • Dominance of unorganised players affects consistency, branding, and scale.
2. Technological Gaps:
   • Many units still use outdated production methods, limiting competitiveness.
3. Sustainability Issues:
   • Traditional toy makers struggle with market access and competition from cheap plastic alternatives.
4. Quality Standards:
   • Ensuring consistent product safety and innovation remains a hurdle.

Opportunities & Way Forward

India stands at a crucial point in transforming into a global toy exporter. To capitalise on this momentum:

• Encourage digital platforms for marketing and global reach
• Promote traditional Indian designs with a modern touch
• Support innovation in educational and eco-friendly toys
• Strengthen infrastructure and skilling in small-scale sectors
• Foster public-private partnerships to build global toy brands

Conclusion

Backed by demographics, policy reforms, entrepreneurial energy, and technological growth, India’s toy industry is poised for global leadership. Sustained support, quality enhancement, and cultural branding will be key to maintaining this upward trajectory.

Source: The Hindu