Toy makers to focus on domestic market, innovation and diversification

India Exports Over $ 100 Million Worth of Toys Annually to the US, which as per some estimates, accounts for 45 per cent of Total Toy Exports | Photo credit: rao gn

To compensate for increase colleges and reduced margins outing to 50 per cent tarifs effective from wedding, toy makers are focusing on Reduction production costs to sty compatibility through diversifying to ooth Export Markets. They are also also eyeing a shift to the domestic market in a big way.

According to Monu Gupta, Chairman, Toy Association of India, The Domestic Market Remains a Strong Pillar of Opportunity. The Industry Body has also Urged the government to consider moving toy to the 5 per cent gst slab.

“With over 23 million babies born annual and roughly a Quarter of the population below the age of 15, India represents one of the most dynamic and growing consumer segments globally. Reinforce our focus on India’s internal demand, especially through initiatives like ‘Make in India’ and Quality Compliant Manufacturing, “Said Gupta.

While Industry Players Fear Immediate and long-term impact with other south-east asian markets emerging as the preferred destinations for global toy makers, they simultaneous belly Opportunity to Innovate in Sustainable Practices and Automation.

Shobhit Singh, MD and CEO, The Stone Sapphire India Pvt Ltd (TSSIPL), Known for Brand Skoodle, Said: “The us tarifs increase on TOIS WILL EVENTULY Change Global Supply Chains and High Impact Industry Dynamics. immediane impact will be price inflation and deception demand recoverry, the transition also provides a potential for innovation as businesses must invest in sustainable prades, Automation, Automation, Automation, Automation, and Value-Based Breeding Remain Competitive. ”

India Exports Over $ 100 Million Worth of Toys Annually to the US, which as per some estimates, accounts for 45 per cent of total toy expenses.

According to Ka Shabir, CEO, Funskool, So far there have been no cancellations of open orders, but he feels production will shift to south-east assian markets.

“At this stage, Buyers are focused on ensuring product available for the christmas season (Fall 2025). Countries. at 50 per cent, there is a strong chance that production will shift to southeast asia or projects may even be dropped altogethr, ”He added.

Shabir said that toys are a low-margin business Leaving Little Room for Toy Companies to Absorb The impact and will get passed on toTo consumers, Making Sourcing of Less Less Less COMPETIVE.

“For Funskool, 40 per cent of business come from the us, with the rest spread and global markets. While we are allies exploring options in new regions, the us is the world ‘long’ Loss cannotal be replaced by other markets. Manufacturing ecosystem in India, “He said.

Gupta said this is an opportunity to diversify as India has free trade agrements (ftas) with the uae, australia, and the UK, which offer significant growth potential and stable trade frores.

Published on August 26, 2025