Global toy majors shifting focus from China to India, exports jumped 239%

The transformation of India's toy industry presents a significant opportunity amid China's declining dominance in manufacturing. From FY15 to FY23, India witnessed a remarkable surge in toy exports by 239% and a corresponding 52% decrease in imports, positioning the country as a net exporter. This growth is attributed to mandatory compliance with Bureau of Indian Standards (BIS) specifications, protective measures, and a strategic shift in sourcing strategies towards a China-Plus-One approach. Major global brands like Hasbro and Mattel increasingly turn to India for their sourcing needs, while manufacturers like Dream Plast and Microplast redirect their focus from China to India.

Riding on supportive policies like BIS compliance and a substantial increase in basic customs duty to 70%, India's toy industry is experiencing rapid expansion. Companies like Funskool have witnessed a surge in production, with approximately 60% of their output catering to export markets across 33 countries. Similarly, distributors and exporters like R P Associates note a significant influx of buyers transitioning from Chinese sourcing to explore India as an alternative market. With entities like Microplast and Incas also establishing operations in India, the country is solidifying its position as a preferred destination for toy manufacturing and sourcing, signalling promising growth prospects for the industry.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.