India’s toy manufacturing sector has undergone a major transformation in recent years, with Finance Minister Nirmala Sitharaman highlighting a sharp decline in toy imports and a rise in domestic production. She said India’s toy exports reached $186 million in FY2025-26, with locally manufactured toys now reaching 153 countries across the world.

Addressing an event organised by the Toy Association of India in New Delhi, Sitharaman said the sector’s growth reflects the government’s focus on quality manufacturing, innovation, and self-reliance. She noted that stronger domestic production capabilities, improved quality standards, and policy support have helped reduce India’s dependence on imported toys.

The finance minister said toy imports have declined by 71% since 2019, describing the trend as a sign of progress towards building a self-reliant manufacturing ecosystem. She added that India’s toy market is expected to grow significantly and could reach $5 billion by 2034, but the country’s ambitions should extend beyond domestic demand.

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Sitharaman urged manufacturers to focus on innovation, design, and technology-driven production to capture a larger share of the global toy market. She said that policy support alone would not be enough and that infrastructure development, entrepreneurship, and innovation would be essential to create a globally competitive toy industry.

Highlighting technology-focused initiatives, the minister pointed to programmes such as the E-Toycathon, which encourages the creation of electronic toys, augmented reality-based games, and coding kits. She said such efforts are helping develop a new generation of products that combine traditional creativity with modern technology.

Sitharaman also highlighted the role of Digital Public Infrastructure in supporting toy makers, artisans, and small entrepreneurs. Platforms such as UPI, ONDC, TReDS, and the Account Aggregator framework are improving access to markets, finance, and digital commerce. She added that women entrepreneurs, PM Vishwakarma scheme beneficiaries, and artisans trained under the Skill India mission are becoming important contributors to India’s growing toy manufacturing sector.

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