Toys are us

An element of playfulness has always been part of Indian culture and therefore it is little wonder that the country has a long and varied history of toys.

Each region of India has its own distinct toys—from paper cards to papier mâché dolls. On paper, leather, wood, and cloth, and even porcelain, there is barely a surface that has not lent itself to the making of Indian toys.

Just to give a sense of the unique richness of toys in the country, they stretch these days from the traditional terracotta bobble-head, the Thanjavur doll, to Mattel’s special Barbie doll based on Indian para-badminton champion Manasi Joshi.

At around $1 billion a year, the toy industry in the country is now on the threshold of great change. With new incentives, innovative startups, and toy clusters coming up in several states, it is renaissance time in the world of Indian toys. India has several strategic advantages in this field, from ample availability of raw materials (the country is the second-largest producer of polyester in the world) to wide availability of high quality, affordable labour.

From Tamil Nadu to Maharashtra, therefore, toy manufacturing clusters are coming up which aim to make the country a global destination for toy making, and a great toy market with its young population and increasing purchasing power. Indian skilled labour in the sector is often 20%-40% cheaper than the nearest competitors in other countries. Major toy manufacturing clusters are coming up in Koppal in Karnataka, Ranipet in Tamil Nadu, and Kakinada in Andhra Pradesh, among other locations. To facilitate existing and new players in the toy sector, state governments have established, or are establishing, toys clusters with plug and play facilities, easy access to raw materials and adequate testing laboratories, and access to ports.

The potential of the industry has been celebrated in a 17-point National Action Plan for Toys, in consultation with 14 Union ministries, with detailed suggested interventions for the development of toy manufacturing in tandem with 13 identified handicrafts toy clusters.

The action plan also includes the public procurement of indigenous toys, the vigorous promotion of Make in India in toy manufacturing and indigenous toy clusters, consumer awareness campaigns, implementation of quality control, and fostering of investments in the industry. A National Toy Fair to be held between February 27 and March 2 is also part of the plans. The use of toys and games as an integral part of the learning process has also been promoted as a key idea in India’s New Education Policy.

There are around 4,000 toy manufacturers in India, 75% of whom are micro units and 22% are small and medium enterprises. The sprawling diversity of manufacturing skills is another source of strength in the Indian toy making sector.

With the various manufacturing hubs, allied sectors in the toy industry have also got into action. India’s many startups at the cutting-edge of technology like artificial intelligence, robotics, and machine learning have also helped build capacity and inter-connectivities between various sub-industries in toy manufacturing.

The market share in the toy market is led by states like Maharashtra (32.6%) and others like Uttar Pradesh (19.3%) and Karnataka (13.6%). Hot on their tails are states like Tamil Nadu, Gujarat, Telangana, and Andhra Pradesh. What is happening, importantly, with all this action is that the country is becoming as adept at technologically cutting-edge toys as it is in making traditional toys. Many state governments are offering up to 30% in capital investment subsidy, which is a strong incentive from many producers.

One great example of this kind of collaboration is the success of Funskool which is based in Chennai where it runs three manufacturing units. The company draws both from the traditional strengths in toy making in the state and the ample amounts of hi-tech skills available there.

The Indian toy manufacturing industry is therefore reaching a most interesting pivot, one that might help it make a global mark in the toy universe.

Views are personal. The author is a multiple award-winning author of nine books. He is a World Economic Forum Young Global Leader.