FM Sitharaman urges toy makers to aim beyond $5-billion market, target bigger global share

Finance Minister Nirmala Sitharaman on Tuesday urged India's toy industry to set its sights far beyond the projected $5-billion domestic market, calling on manufacturers to aggressively pursue a larger share of the rapidly expanding global toy business.

Addressing the Toy Business International B2B Expo in New Delhi, Sitharaman said India's ambitions should match its growing manufacturing capabilities and not remain confined to the current market projections.

“The global growth is such that that number for 2032 for the global toy market is $179 billion. So if it is $179 billion by 2032, we are still aiming at only $5 billion by 2034. I think we are capable of doing a lot better,” she said. “We have immense potential to capture that $179 billion, at least aim for one quarter of it, not stay at $5 billion. That's a big number, no doubt. But we should aim higher," the finance minister added.

Industry gathers momentum

Highlighting the sector's recent progress, Sitharaman said India's toy exports touched $186 million in FY26, while Indian-made toys are now being exported to 153 countries.

“India's toy exports reached 186 million US dollars... and exports of toys are now going to 153 countries,” she said.

The minister also pointed to a sharp decline in imports, attributing it to policy measures aimed at strengthening domestic manufacturing and improving product quality.

“Between 2019 and 2026, that has declined by 71%. I don't need to explain it. If you were importing 100, you are today only importing about 29. Seventy-one per cent you have brought it down,” she said.

Policy support

Sitharaman said the government had created an enabling ecosystem for the sector through higher import duties, stricter quality standards and coordinated policy support.

She recalled that the basic customs duty on toys was raised from 20% to 60% in 2020 to protect domestic manufacturers from low-quality imports, while the Bureau of Indian Standards intensified enforcement to ensure only safe toys entered the country.

The finance minister also highlighted the National Action Plan for Toys, which brings together 14 central ministries and departments to develop manufacturing clusters, strengthen skills and build globally competitive production ecosystems.

She said free trade agreements with the United Arab Emirates and Australia have opened duty-free access for Indian toy exports, while schemes such as RoDTEP, PM Mudra and MSME credit guarantee programmes are helping manufacturers expand.

Focus on innovation and branding

Calling innovation the next growth driver, Sitharaman said India must move beyond conventional toys and invest in electronic, coding and augmented reality-based products.

E-Toy-Kathon... has become a genuine incubator for young Indian innovators building augmented reality games and coding kits and home-grown electronic toys,” she said.

She also stressed that long-term success would depend not only on manufacturing but also on creating globally recognised Indian brands.

“Manufacturing is important but branding creates value. Enduring value is only when your brand can be identified,” she said, urging Indian companies to build brands capable of competing in international markets.