Reasons to Invest

Availability of Raw Material: India is the world’s 2nd largest producer of polyester and related fibers, accounting for 8% global share for plush toys; availability of plastics, paper boards, and textiles at competetive prices
Customized State Incentives: Multiple states have announced incentives for toy manufacturers subsiding nearly 30% of the cost of manufacturing.
Large Cluster Ecosystem: The Government of India has established 60+ toy clusters to encouarge domestic and global toy manufacturers to set up operations in India. 400 acre cluster set up by Aequs in Koppal, Karnataka; 100 acre facility being developed in Uttar Pradesh

How We Help Investors

Research Content Provider

Location Analysis

Policy Advisory/Representation

Stakeholders Meeting

Issue Resoution

Regulatory Clearance Facilitation

FDI Norms

100% FDI is allowed under the Automatic Route

FDI Allowed

Government Support

Central Government Schemes
  • Scheme For Granting Recognition & Registration To In-House R&D Units
  • Remission Of Duties & Taxes On Exported Products (RoDTEP)
  • Duty Drawback Scheme
  • Export Promotion Capital Goods (EPCG) Scheme
  • Custom Bonded Warehouse Scheme
  • Increase in BCD for Electronic Toys (under HSN 9503) from 5% to 15% to encourage domestic manufacturing.
State Incentives
  • Capital subsidy
  • Stamp duty exemption
  • Interest subsidy
  • Tax reimbursement
  • Electrical duty exemption  
Product Specific Industrial Cluster Development Program

Under the Scheme of Funds for Re-generation of Traditional Industries (SFURTI) of the Ministry of Micro, Small & Medium Enterprises, assistance is provided for creation of common facilities centre with latest machines, design-centres, raw material bank, skill development etc. As of Feb 2023, 19 toy clusters across the country have been approved under the Scheme benefitting 11,749 artisans with an outlay of INR 55.65 Cr.

Ministry of Textiles is also providing need based support to Toy Clusters in the area of technology, marketing, soft and hard interventions and infrastructural support for sustainable development of handicraft artisan has identified 13 toy clusters across the country for the overall development of cluster, artisans of handmade toys.

In 2021, India's first toy cluster, in Koppal, Karnataka was developed by Aequs Infra. The cluster provides state of the art industrial infrastructure with power, water, internal roads, and waste disposal facilities and common facilities like customs, security, and a Centre of Excellence.

The cluster provides a built to suit, self-sustained ecosystem spread over 400 acres of land, including an SEZ to serve export markets and domestic tariff area (DTA) for the domestic market. It has the potential to create 40,000 jobs in five years and attract over INR 5,000 Cr ($662.8) in investments. Additionally, a 100-acre facility is being developed in the state of Uttar Pradesh.

Quality Control Order (QCO) on Toys

To instill standardization in production and import of toys, a Toy Quality Control Order was issued on 25 February 2020 under the BIS act to ensure toys manufactured or imported into the country were in-line with global quality standards. Recently, an amendment to the QCO exempted handicraft artisans and MSMEs from complying with QCO norms for a period of one year to boost the domestic manufacturing ecosystem in India.

Trade Scenario

The import of toys has witnessed a decline of 57%, dropping from $371.69 Mn in 2018-19 to $158.70 Mn in 2022-23.
India’s exports of toys have surged by an impressive 60%, climbing from $203.46 Mn in 2018-19 to $325.72 Mn in the fiscal year 2022-23, according to the Ministry of State for Commerce and Industry.
India has recently concluded Free Trade Agreements with geographies such as UAE and Middle East, providing zero-duty market access opportunities for India-made toys.
Indian-made toys enjoy zero duty market access under the recently concluded India-UAE CEPA (Comprehensive Economic Partnership Agreement) and India-Australia ECTA (Economic Cooperation and Trade Agreement

Major Investors

Value Chain Assessment

Product Profile

Outdoor and Sports Toys: Largest toy category, comprising 25-30% of the market.
Infact & Pre-School Toys: Comprise 15-20% of the market.
Dolls comprise 10-15% of the market.
Games & Puzzles: Comprise 10-15% of the market
Construction Toys: Comprise 5-10% of the market
Other categories comprise 15-20% of the remaining market.

Team Articles

Aug 28, 2023
Round Tables Organized by the Consumer Goods Team

Toy Industry Roundtable Interaction  The Department for…

May 08, 2023
The Toy Story in India: A look at India’s thriving Toy Retail Market

Toys have been an integral part of childhood, and in…

Oct 18, 2021
Traditional Toy Industry-New India’s Sunrise Sector

The history of the Indian toy industry stretches back to…



What are the objectives of the scheme for setting up of plastic parks in India?

The major objectives of the scheme are:
1) Increase the competitiveness, polymer absorption capacity and value addition in the domestic downstream plastic processing industry through adaptation of modern, research and development led measurers.
2) Increase investments in the sector through additions in capacity and production, creating quality infrastructure and other facilitation to ensure value addition and increase in exports.
3) Achieve environmentally sustainable growth through innovative methods of waste management, recycling, etc.
4) Adopt a cluster development approach to achieve the above objectives owing to its benefits arising due to optimization of resources and economies of scale.

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