Tariff war opens door for India to emerge as global toy export hub.

As the US-China tariff war intensifies, the Indian toy industry have foreseen the situation to be a “golden opportunity” to position India as a major export hub for toys, especially to the United States, a trade body official said on Monday.

“The Indian toy sector, once import-dependent, is now transforming with local manufacturers scaling up to meet domestic demand and aiming for global markets”, said Akshay Binjrajka, Chairperson of the Toy sub-committee at the Bharat Chamber of Commerce. Binjrajka also appealed to the Chief Minister of West Bengal Ms. Mamata Banerjee to support the state’s toy industry by developing a dedicated cluster — a longstanding demand. “West Bengal has all the ingredients to become a toy manufacturing hub — strategic location, seaport access, good logistics, raw materials, and labour. But the final push from the state is still missing”, he said. He emphasised that the toy sector, a major MSME employer, could significantly boost investment and jobs in West Bengal. “If India becomes a global toy supplier, Bengal must lead that movement”, he asserted.

India’s toy exports have already witnessed a steady rise — from USD 40 million in 2014-15 to an estimated USD 152 million in 2023-24. More notably, toy imports from China to India have plunged from USD 235 million in FY20 to just USD 41 million in FY24, after India imposed strict control norms on imports and boosted domestic sourcing. Despite policy tightening, cheap, unregulated Chinese toys continue to flood the Indian market, and might get intensified after US tariffs hurting domestic capacity and profitability. He urged the Centre to enforce stricter checks at ports and called on the Bureau of Indian Standards (BIS) to curb the entry of substandard toys.

The United States has recently imposed a steep 145% tariff on toy imports from China — a move that could reshape the global toy trade. China, which previously accounted for nearly 77% of US toy imports, is expected to see a significant drop in exports due to the high tariff, opening up space for alternate suppliers, the official said. Akshay Binjrajka, that India is well-positioned to fill the emerging vacuum. The US toy market, valued at around USD 41.7 billion, offers a massive opportunity for Indian manufacturers,” he said, adding that Indian products can now compete with Chinese offerings on both quality and price.

Team Maverick