Reasons to Invest

World’s second largest producer of polyester and related fibers with 8% global share for plush toys.
Domestic toy demand forecasted to grow at 10-15% against global average of 5%
The toys industry in India has the potential to grow to $2-3 bn by 2024.

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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 Dec’ 2021, 14 toy clusters across the country have been approved under the Scheme benefitting 8839 artisans with an outlay of INR 41.60 Cr ($5.4 mn) .

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 crore ($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

All toy products under category HS Code 9503 benefit from a preferential tariff structure under APTA (Asia Pacific Trade Agreement) and AIFTA (ASEAN India Free Trade Area). As such, the imposed duties on toy imports of 60% are effectively reduced to up to 34.2% under APTA and 0% under AIFTA subject to FTA conditions.
India has been importing toys of an average value of $285 mn for the last 3 years under the Chapter 9503.
Export of toys increases from $96.17 mn in 2014-15 to 326.63 million in the 2021-2022 with USA and UK being the lead export destinations

Major Investors

Value Chain Assessment

Infrastructure Map

Team Articles

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

The history of the Indian toy industry stretches back to…

Feb 03, 2021
The Budget for the Aspirational “New India”

As India revives from the shackles of Covid-19 pandemic and…



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.

For more details, please visit the following link. 

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