The Indian toy market, which is currently estimated at $1 billion, has the potential to double itself by 2025, according to a FICCI-KPMG report. While presenting a detailed overview of the Indian toy industry focusing both on demand and supply-side measures needed to make India a global toy manufacturing hub, the report ‘State of play: India’s toy story – Unboxing fun and beyond,’ says that India could also target a 2 per cent share of global exports by 2025. There is high growth potential for India in exports of plastic toys and board games in the US, EU and Middle East among other markets. Currently, mere 15 per cent of the toys demand is met indigenously, while 85 per cent is imported from countries like China, Malaysia, Netherlands and the US. The report says that as the country gears up to leverage the potential through well laid out policy measures and action plan, the over dependency on imports can be reduced to 60 per cent. The report has prescribed measures like phased manufacturing programme, implementation of a dedicated policy, and simplification of mandatory compliances for promoting the country’s toy industry towards doubling the market size. It states that whereas globalisation has expanded market access for raw materials and finished goods, the Covid-19 pandemic has exposed the vulnerabilities of global firms procuring from a single source market. The established need for de-risking supply chains has presented India with another opportunity to embrace its heritage and inherent advantages in skill and technology to become a global player in the industry. Important information “For a child to develop, it is important that play is integral to his/her life. The toy industry has a critical role in bringing play to every child of every strata in India, by delivering quality toys at affordable price points. This report provides an important information foundation on a hitherto unorganised industry which can be revolutionised into a large innovative and organised industry that meets the needs of children not only in India, but throughout the world,” says Vivek Jhangiani, Chairman, FICCI Toy sector Committee and Past president, The All India Toy Manufacturers Association. “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. Toys categories such as dolls, soft toys, baby & infant and pre-school are highly labour-intensive with good potential for manufacturing capabilities in India and easy to penetrate the export market, except for items that require decorations and similar value additions where the productivity levels are significantly lower (30-40 per cent) than China,” says the FICCI-KPMG report. It has also suggested the development of toy design centres, with a focus on R&D to encourage innovation; leveraging National Education Policy 2020 to push local artisans, and increasing the number of labs for the toy sector. “Toys have been an integral part of our culture since the beginning of civilization. However, the Indian toy industry is yet to realise its true potential of becoming a global phenomenon. For Make in India toys to succeed in domestic and international markets it is critical to support Design in India and Innovate in India,” says Preeti Sitaram, Director, Government & Public Services, KPMG in India. The report also says that the need for de-risking supply chains has presented India with another opportunity to embrace its heritage and inherent advantages in skill and technology to become a global player in the industry. The global toy market is currently pegged at around $95 billion where Indian exports contribute merely $220 million.
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Toys have been an integral part of Indian culture and heritage
