A significant paradigm shift in world trade patterns has created a fascinating window of opportunity for Indian toy industry. While the United States is levying higher tariffs on Chinese products, American consumers are increasingly looking for alternative sources, and India is finding itself a top contender.
Ajay Aggarwal, President of the Toy Association of India, emphasized the growing momentum. “The US is a massive market for toys, and with China facing steep tariffs, Indian manufacturers stand to gain if our tariff structures remain favourable,” he said.
Currently, there are approximately 20 Indian companies involved in mass-scale exports of toys to the US. Aggarwal cited increased inquiries by US buyers during the last month as an indicator of a change in sourcing behavior. Indian export houses are also looking for producers who can fulfill strict US compliance parameters, such as safety measures and white-label production capabilities.
“We are witnessing a noticeable rise in requests for white labelling and original equipment manufacturing (OEM) tailored for the US market,” Aggarwal noted.
Toy Exports Set for Growth
The global toy market, valued at $42.8 billion in 2024, is projected to expand to $56.9 billion by 2032, according to GMI Research, reflecting a steady CAGR of 3.6%. This growth is fueled by rising demand for educational and interactive toys, a sector where Indian manufacturers are increasingly competitive.
Recognizing the opportunity, the Toy Association of India is planning to organize a seminar aimed at export-ready manufacturers to help them tap into this potential boom. “This is truly a golden opportunity. The US remains the world’s largest toy market, and Indian players must be ready to seize the moment,” Aggarwal stressed.
Challenges and the Way Forward
Despite the upbeat scenario, India’s current share in global toy exports remains less than 1%, underlining the need for strategic action. Aggarwal called for greater government support to boost infrastructure, ease compliance processes, and improve manufacturing capabilities to match international standards.
“If we get the benefit of lower tariffs compared to competitors, India can significantly expand its footprint in the US toy market,” Aggarwal added.
A New Chapter for Indian Toy Industry
As international supply chains diversify and geopolitical tensions transform trade flows, Indian toy makers stand at a strategic juncture. With industry lead initiatives and favorable government policies, India has the potential to soon cut a much greater share of the global toy market, making today’s ‘golden chance’ tomorrow’s long-lasting success story.
Also Read: US-China Trade War May Trigger $800B Sell-Off: Goldman
