Ahmedabad: It’s game on for Gujarat’s toy industry: imports are out, and local manufacturing is in full swing. With import duties stacked at 70%, local manufacturers are taking centre stage, catering to the domestic market while leveraging zero-duty access to expand exports. The recent Union Budget laid out plans to transform India into a global toy hub by developing clusters, upskilling workers, and strengthening the manufacturing ecosystem. Industry players believe that Gujarat, with its strong foundation in plastics and engineering, is ready to roll the dice and host a dedicated toy cluster.
According to the Economic Survey 2023-24, India’s toy imports from China have tumbled from $214 million in FY13 to $41.6 million in FY24. China’s share in India’s toy imports has also shrunk from 94% to 64% over the same period, signalling India’s growing self-reliance in the toy market.
Manish Kukreja, former president of The All-India Toys Manufacturers’ Association, said, “With the quality control order (QCO) and a hefty 70% import duty, India has successfully reduced its reliance on Chinese toys. Uttar Pradesh, Gujarat, Maharashtra and NCR have emerged as major toy-manufacturing hubs. Today, over 1,400 toy factories in India operate with BIS licences, and the number is rising. Gujarat alone has seen nearly 100 companies enter the toy-making space, mostly as small-scale units, with some setting up large facilities.”
He highlighted that Gujarat’s strong ecosystem, including a robust plastics industry and machinery manufacturing, has given its toy sector a competitive edge. “In 2019, Indian toy manufacturers held just a 20% share of the country’s Rs 8,000 crore retail toy market. That share has now jumped to over 50%,” Kukreja said.
However, challenges remain, as some Chinese toys continue to enter the market under different HSN codes to bypass quality checks, he added.
Ketan Vora, president of the Toys Association in Ahmedabad, echoed this sentiment. “Toy imports have dropped drastically in the past four years. After Covid, the central govt introduced strict quality standards, reducing the dumping of low-quality Chinese toys. This shift has unlocked new opportunities for domestic manufacturers. In Gujarat alone, more than 50 new toy factories have sprung up in the past four years, and exports are now taking off.”
Vora added that along with Gujarat, states like Uttar Pradesh and Maharashtra, have also witnessed significant growth in toy manufacturing. “These three states have played a crucial role in reducing toy imports while ensuring a steady supply of high-quality, locally made toys. Gujarat-based companies produce everything from plastic toys to soft toys, puzzles and rattles.”
A case study titled “Success Story of Made in India Toys” conducted by IIM Lucknow for the Department For Promotion Of Industry And Internal Trade (DPIIT), highlighted the transformation of India’s toy industry. Between 2014 and 2020, the industry not only expanded its manufacturing base but also reduced dependency on imported materials from 33% to 12%. The report emphasised that India’s zero-duty market access to the UAE and Australia has helped boost exports. To establish India as a viable alternative to China and Vietnam, the study stressed the need for continuous collaboration between the govt and industry players to ensure advancements in technology, stronger e-commerce integration, enhanced brand-building, better engagement with educators and parents, and collaborations with regional artisans to promote culturally rich toys.
‘Mystery shopping’ survey turned the game around
In 2019, the Quality Council of India (QCI) conducted a “mystery shopping” survey, purchasing 121 types of toys from the market and testing them at NABL-accredited labs. The results were alarming: 67% of imported toys failed safety tests. Around 80% of plastic toys didn’t meet physical and mechanical safety standards, posing risk of injuries. Chemical tests revealed that 30% of plastic toys and 45% of soft toys contained harmful levels of phthalates. Some toy tents failed flammability tests, and 75% of electric toys showed mechanical flaws.
These unsafe toys, mostly imported from China, Sri Lanka, Malaysia, Germany, Hong Kong and the US, were widely available in Indian markets, putting children at risk. Following the QCI report, the Directorate General of Foreign Trade (DGFT) issued a directive in Dec 2019 mandating consignment-based testing for all imported toys. This ensured that only safe, compliant toys reached Indian shelves.
The QCI’s initiative not only exposed the issue of substandard toys but also triggered a much-needed overhaul of the toy import regulations.
Gujarat toys set for US, Europe export push
Gujarat’s toy manufacturers are cashing in on the industry’s upward trend. Subhash Zala, founder of Aditi Toys, said, “We started toy manufacturing in 2015 and have now set up one of the largest single-location toy plants in India, with a monthly capacity of 1,500 tonnes of plastic toys. We have seen 30-40% CAGR growth. Import restrictions have fuelled the growth of Indian toy makers, and we are now exporting to neighbouring countries. From April, we will begin exporting to the US and Europe. Globally, buyers are favouring Indian toys over Chinese ones post-Covid, opening new export opportunities. The industry’s focus on technology, R&D, and innovation is shaping India into a global toy manufacturing hub.”
Zala added that Rajkot’s stronghold in plastic kitchenware, moulding, and assembling, helps provide skilled manpower for toy production.
Similarly, entrepreneurs Pritesh Patel and Nrup Patel launched a toy manufacturing facility near Kadi after Covid, capitalising on the new opportunities created by import restrictions. Nrup Patel, director of Innovitoy Pvt Ltd, said, “We set up our toy manufacturing unit in Kadi in 2021-22 and have seen a steady rise in demand. We started with just two moulding machines and now operate 10, producing around 15,000 toy pieces per day. Expansion plans are already underway. Gujarat’s well-established plastics industry is also driving growth. While we currently cater to the domestic market, we are preparing to enter the export market soon.”
He added that new toy factories have emerged in districts like Ahmedabad, Rajkot, Mehsana and Morbi over the past few years.
Gujarat to boost toy industry, plans toy park
Gujarat’s toy industry has gained significant traction over the past five years, and the state govt is gearing up to accelerate its growth further. Industries minister Balwantsinh Rajput said, “The central govt’s recent budget has outlined plans to make India a global toy hub by developing clusters, enhancing skills and fostering sustainable toy manufacturing. We are committed to supporting this vision by taking similar initiatives in Gujarat in the coming months. A dedicated toy park is on the horizon, and with the state’s strong engineering and plastics industries, Gujarat is well-equipped to lead the charge in toy manufacturing.”
Photo Quotes:
In the recent budget, the Centre announced initiatives to make India a global toy hub by developing clusters, skills and a manufacturing ecosystem for high-quality, sustainable toys. We are taking steps to boost the industry
Balwantsinh Rajput, State Industries Minister
The Centre imposed import restrictions on toys, and this has helped domestic manufacturing. Our import, which was 80% in 2019, has now come down to below 50%. Gujarat is emerging as a leading toy manufacturing hub
-Manish Kukreja, Past President, All India Toy Manufacturers’ Association
Gujarat has good opportunity in the toys sector as we have a matured engineering and plastics industry. We are seeing growth in exports because most foreign buyers prefer Indian goods to Chinese ones
– Subhash Zala, founder, toy manufacturing company
With 70% import duty and BIS requirement, we have seen a decrease in Chinese imports. Availability of raw material and skill manpower has given Gujarat an advantage. We will soon be supplying toys globally
-Nrup Patel, co-founder, toy manufacturing company
Gujarat has seen fast growth in toys manufacturing as imports decrease. Manufacturers here make all types of toys. Most of the companies are small but will see expansion soon with increasing opportunities
-Ketan Vora, President, Toys Association, Ahmedabad
Pointers:
Exports on the rise
– Toy exports have grown at a robust 15.9% compound annual growth rate (CAGR) from FY13 to FY24, govt data reveals
– 70% import duty has significantly curbed toy imports from China
– The govt has implemented stringent quality control measures for imported toys
– Uttar Pradesh, Gujarat, the National Capital Region (NCR), and Maharashtra are leading India’s toy manufacturing efforts
– Zero-duty market access to the UAE and Australia has created lucrative export opportunities
– Established engineering and plastics industry has helped toy manufacturing sector
Table: Decreasing trade deficit in toys
Financial year Trade deficit (In $ million)
2013 -238
2014 -225
2015 -237
2016 -236
2017 -185
2018 -213
2019 -169
2020 -105
2021 61
2022 217
2023 167
2024 106
(Source: Economic Survey, 2024)
According to the Economic Survey 2023-24, India’s toy imports from China have tumbled from $214 million in FY13 to $41.6 million in FY24. China’s share in India’s toy imports has also shrunk from 94% to 64% over the same period, signalling India’s growing self-reliance in the toy market.
Manish Kukreja, former president of The All-India Toys Manufacturers’ Association, said, “With the quality control order (QCO) and a hefty 70% import duty, India has successfully reduced its reliance on Chinese toys. Uttar Pradesh, Gujarat, Maharashtra and NCR have emerged as major toy-manufacturing hubs. Today, over 1,400 toy factories in India operate with BIS licences, and the number is rising. Gujarat alone has seen nearly 100 companies enter the toy-making space, mostly as small-scale units, with some setting up large facilities.”
He highlighted that Gujarat’s strong ecosystem, including a robust plastics industry and machinery manufacturing, has given its toy sector a competitive edge. “In 2019, Indian toy manufacturers held just a 20% share of the country’s Rs 8,000 crore retail toy market. That share has now jumped to over 50%,” Kukreja said.
However, challenges remain, as some Chinese toys continue to enter the market under different HSN codes to bypass quality checks, he added.
Ketan Vora, president of the Toys Association in Ahmedabad, echoed this sentiment. “Toy imports have dropped drastically in the past four years. After Covid, the central govt introduced strict quality standards, reducing the dumping of low-quality Chinese toys. This shift has unlocked new opportunities for domestic manufacturers. In Gujarat alone, more than 50 new toy factories have sprung up in the past four years, and exports are now taking off.”
Vora added that along with Gujarat, states like Uttar Pradesh and Maharashtra, have also witnessed significant growth in toy manufacturing. “These three states have played a crucial role in reducing toy imports while ensuring a steady supply of high-quality, locally made toys. Gujarat-based companies produce everything from plastic toys to soft toys, puzzles and rattles.”
A case study titled “Success Story of Made in India Toys” conducted by IIM Lucknow for the Department For Promotion Of Industry And Internal Trade (DPIIT), highlighted the transformation of India’s toy industry. Between 2014 and 2020, the industry not only expanded its manufacturing base but also reduced dependency on imported materials from 33% to 12%. The report emphasised that India’s zero-duty market access to the UAE and Australia has helped boost exports. To establish India as a viable alternative to China and Vietnam, the study stressed the need for continuous collaboration between the govt and industry players to ensure advancements in technology, stronger e-commerce integration, enhanced brand-building, better engagement with educators and parents, and collaborations with regional artisans to promote culturally rich toys.
‘Mystery shopping’ survey turned the game around
In 2019, the Quality Council of India (QCI) conducted a “mystery shopping” survey, purchasing 121 types of toys from the market and testing them at NABL-accredited labs. The results were alarming: 67% of imported toys failed safety tests. Around 80% of plastic toys didn’t meet physical and mechanical safety standards, posing risk of injuries. Chemical tests revealed that 30% of plastic toys and 45% of soft toys contained harmful levels of phthalates. Some toy tents failed flammability tests, and 75% of electric toys showed mechanical flaws.
These unsafe toys, mostly imported from China, Sri Lanka, Malaysia, Germany, Hong Kong and the US, were widely available in Indian markets, putting children at risk. Following the QCI report, the Directorate General of Foreign Trade (DGFT) issued a directive in Dec 2019 mandating consignment-based testing for all imported toys. This ensured that only safe, compliant toys reached Indian shelves.
The QCI’s initiative not only exposed the issue of substandard toys but also triggered a much-needed overhaul of the toy import regulations.
Gujarat toys set for US, Europe export push
Gujarat’s toy manufacturers are cashing in on the industry’s upward trend. Subhash Zala, founder of Aditi Toys, said, “We started toy manufacturing in 2015 and have now set up one of the largest single-location toy plants in India, with a monthly capacity of 1,500 tonnes of plastic toys. We have seen 30-40% CAGR growth. Import restrictions have fuelled the growth of Indian toy makers, and we are now exporting to neighbouring countries. From April, we will begin exporting to the US and Europe. Globally, buyers are favouring Indian toys over Chinese ones post-Covid, opening new export opportunities. The industry’s focus on technology, R&D, and innovation is shaping India into a global toy manufacturing hub.”
Zala added that Rajkot’s stronghold in plastic kitchenware, moulding, and assembling, helps provide skilled manpower for toy production.
Similarly, entrepreneurs Pritesh Patel and Nrup Patel launched a toy manufacturing facility near Kadi after Covid, capitalising on the new opportunities created by import restrictions. Nrup Patel, director of Innovitoy Pvt Ltd, said, “We set up our toy manufacturing unit in Kadi in 2021-22 and have seen a steady rise in demand. We started with just two moulding machines and now operate 10, producing around 15,000 toy pieces per day. Expansion plans are already underway. Gujarat’s well-established plastics industry is also driving growth. While we currently cater to the domestic market, we are preparing to enter the export market soon.”
He added that new toy factories have emerged in districts like Ahmedabad, Rajkot, Mehsana and Morbi over the past few years.
Gujarat to boost toy industry, plans toy park
Gujarat’s toy industry has gained significant traction over the past five years, and the state govt is gearing up to accelerate its growth further. Industries minister Balwantsinh Rajput said, “The central govt’s recent budget has outlined plans to make India a global toy hub by developing clusters, enhancing skills and fostering sustainable toy manufacturing. We are committed to supporting this vision by taking similar initiatives in Gujarat in the coming months. A dedicated toy park is on the horizon, and with the state’s strong engineering and plastics industries, Gujarat is well-equipped to lead the charge in toy manufacturing.”
Photo Quotes:
In the recent budget, the Centre announced initiatives to make India a global toy hub by developing clusters, skills and a manufacturing ecosystem for high-quality, sustainable toys. We are taking steps to boost the industry
Balwantsinh Rajput, State Industries Minister
The Centre imposed import restrictions on toys, and this has helped domestic manufacturing. Our import, which was 80% in 2019, has now come down to below 50%. Gujarat is emerging as a leading toy manufacturing hub
-Manish Kukreja, Past President, All India Toy Manufacturers’ Association
Gujarat has good opportunity in the toys sector as we have a matured engineering and plastics industry. We are seeing growth in exports because most foreign buyers prefer Indian goods to Chinese ones
– Subhash Zala, founder, toy manufacturing company
With 70% import duty and BIS requirement, we have seen a decrease in Chinese imports. Availability of raw material and skill manpower has given Gujarat an advantage. We will soon be supplying toys globally
-Nrup Patel, co-founder, toy manufacturing company
Gujarat has seen fast growth in toys manufacturing as imports decrease. Manufacturers here make all types of toys. Most of the companies are small but will see expansion soon with increasing opportunities
-Ketan Vora, President, Toys Association, Ahmedabad
Pointers:
Exports on the rise
– Toy exports have grown at a robust 15.9% compound annual growth rate (CAGR) from FY13 to FY24, govt data reveals
– 70% import duty has significantly curbed toy imports from China
– The govt has implemented stringent quality control measures for imported toys
– Uttar Pradesh, Gujarat, the National Capital Region (NCR), and Maharashtra are leading India’s toy manufacturing efforts
– Zero-duty market access to the UAE and Australia has created lucrative export opportunities
– Established engineering and plastics industry has helped toy manufacturing sector
Table: Decreasing trade deficit in toys
Financial year Trade deficit (In $ million)
2013 -238
2014 -225
2015 -237
2016 -236
2017 -185
2018 -213
2019 -169
2020 -105
2021 61
2022 217
2023 167
2024 106
(Source: Economic Survey, 2024)