With the United States slapping steep tariffs on toy imports from countries like China and Vietnam, Indian toy manufacturers see a golden window opening—and they’re not wasting any time. Domestic players are already ramping up production and partnering with global brands to fill the gap left by their higher-tariffed competitors, say industry insiders.
Unlike Vietnam, which now faces a hefty 46% import duty on toys entering the US, or China, burdened with a staggering 54%, India’s additional tariff stands at a relatively lower 26%. While not negligible, it’s giving Indian exporters a competitive edge in the world’s largest toy market.
The Underdog Advantage
“China alone ships around $80 billion worth of toys globally, while Vietnam is close to $6 billion. With these new tariffs, American buyers are suddenly taking a fresh look at India,” said Manu Gupta, CEO of Playgro Toys India. “We’ve got a real shot here, and international toy giants are actively scouting India to set up manufacturing bases.”
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India’s toy exports have held steady between $326 million and $348 million over the past three years. While modest compared to the export volume of its Asian peers, industry leaders believe this could be the inflection point the sector has long awaited.
From Policy Push to Ground Reality
Gupta pointed out that it’s not just the central government fueling the momentum. Several states—Madhya Pradesh, Karnataka, Odisha, Haryana, and Bihar—are rolling out toy-sector-specific policies to woo investors. “What’s heartening is the level of coordination we’re seeing from both the centre and states. Everyone’s aligned on making India a serious player in this space,” he added.
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Major global brands in wooden and soft toys are reportedly in talks with Indian companies to explore joint ventures, hinting at a broader shift in manufacturing strategy among international firms.
Building on National Plans
Amitabh Kharbanda, promoter of Sunlord Group, believes that the recent Budget announcement of a National Action Plan for Toys is another boost. “It shows the government is thinking long-term. This isn’t just about tariffs—it’s about making India a global toy hub,” he said.
With the right mix of trade advantages, policy support, and foreign interest, the Indian toy industry is hoping to turn this moment into a movement. And if the current momentum holds, Indian-made toys might soon be filling a lot more shelves in American stores.
