TV
The global toy market of about 306 billion dollars in 2022 is poised to reach 391.62 billion dollars by 2030. The growth would be facilitated by a robust online toy marketing infrastructure. Based on age group segmentation, toys catering to the 3 to below 5 years group had the maximum share in 2022 and the outdoor and sports toy segment emerged as the leading segment in that year. Asia-Pacific region was the leading revenue generator in 2022. India’s toy production volume has been modest but is now showing encouraging growth. Toy manufacturing reached over USD 1.4 billion (Rs 11,760 crore) in 2023 and accounted for about 0.45% of the global market. The country’s production is expected to reach $4.4 billion (Rs 36,960 crore)by 2032. With a population of 145.66 crores accounting for about 18% of world's population and with over a quarter of it under 14 years old, India provides a huge market for toys. Rising disposable income and changing spending patterns of Indian families have been developments that are toy-friendly. More children are shifting their preference from traditional and medium- to low-end battery-operated toys to innovative ones. High spenders are fascinated with high-end games such as Grand Theft Auto and even with McDonald’s Happy Meal or Kinder Joy toys. Remote-controlled helicopters and robots also have a fan base.
The Union government supports the toy industry through the National Action Plan for Toys (NAPT). In 2021, India implemented the Toys Quality Control Order (QCO) to ensure product safety and standardization. In March 2023, India increased the customs duty on toys to 70%. The Indian toy industry has the advantages of a skilled workforce, its diverse range of toys, India’s penchant for innovation and creativity, and societal emphasis on using toys in learning and education. India also has a booming online retail sector that is supporting the sector in many ways. Among toys, dolls, soft toys, and board games are cost-competitive and in high demand, making them compatible with our manufacturing capabilities. Markets in Africa and the Middle East could offer good marketing opportunities of India.
The government is planning a phased manufacturing programme (PMP) for toys to build a robust indigenous manufacturing ecosystem on the pattern adopted in 2015 for mobile phones. India’s domestic toy industry comprises 4,000 micro, small and medium enterprises (MSMEs) and is primarily in the unorganised sector—a key area of focus for the government. The government is working on an appropriate policy that will make local assembly of toys cheaper than imports.
Some states like Gujarat, Rajasthan, Karnataka, and Tamil Nadu are now active in the toy sector. Odisha must enter the segment. Odisha should get in touch with top international toy manufacturers from the USA, Canada, Europe and Japan, and assure them the best possible assistance. Odisha could think of establishing an ‘Indian Toy Museum’ to promote awareness about different types of toys. Odisha should set up a few toy clusters and a central knowledge centre in collaboration with design institutes and support indigenous manufacturers to comply with the quality standards. Channapatna in Karnataka, Kondaplli in Andhra Pradesh, Thanjavur in Tamil Nadu, Dhubri in Assam, and Varanasi in UP are places that have their own toys. In Odisha too places like Bargarh, Subarnapur and Raghurajpur are known for their own toys. Wooden statues, idols and toys, paper-mache toys, terracotta toys, horn toys, bell-metal and brass toys have the potential of development. Ganjappa cards, properly marketed, could be hugely popular. New entrepreneurs and renowned international toy manufacturers should be guided to look at the traditional toy-making expertise in Odisha and evolve appropriate products taking existing toy resources into consideration.
The government’s push for domestic manufacturing and renowned global toy companies looking to India as a manufacturing destination has now raised positive hopes for the sector. Key interventions to promote the growth of toy manufacturing in India have been through import duty hikes, higher certification standards for the import of foreign toys, and allotment of manufacturing plots and investment zones.
With China shifting focus to higher-value toys, opportunities have opened for other countries. Vietnam has already changed its laws and created a robust toy industry in just three years. India is now joining the race. There is a start-up opportunity in this sector as well. A robust toy industry would mean a flow of adequate investment into the labour-intensive manufacturing segments, generation of much-needed jobs and support to the MSME sector.
Toys are increasingly being viewed as crucial objects that help children improve their learning. Their traditional use as an entertainment medium has undergone a shift. Several educational institutions for young children have been using simple and complex toys to help the children in their learning process. Odisha must enter this exciting sector soon and in adequate measure.
(DISCLAIMER: This is an opinion piece. The views expressed are the author’s own and have nothing to do with OTV’s charter or views. OTV does not assume any responsibility or liability for the same.)
