India's Toy Turnaround

How India cut toy imports and boosted exports through higher duties and mandatory quality standards, and the debate over protectionism.

Until recently, India imported most of its toys, largely from China.

The policy shift

In 2020, the government raised import duty on toys from 20 percent to 60 percent, and later to 70 percent in 2023.
From January 2021, a Quality Control Order required toys sold in India to meet BIS safety standards, with testing of each import consignment.

Results

Toy imports fell sharply, by around half or more between 2018-19 and 2023-24, according to government figures.
Toy exports rose.
Domestic manufacturers expanded, and some global brands began sourcing from India.

Critics’ concerns

Higher prices for consumers.
Less variety.
Small toy sellers struggled with compliance.
Protection may reduce pressure to become globally competitive.

Supporters’ view

Safety standards protect children from harmful toys.
Jobs and clusters in places like Noida, Delhi and Koppal (Karnataka).

Next steps

A proposed national action plan and incentives aim to make India a global toy hub.

The toy shop

A toy shop owner finds that cheap imported toys disappear from wholesale markets after 2021. He stocks more Indian-made toys, some pricier but BIS-certified.

Thinking falling imports alone mean success

Prices, variety and competitiveness also matter.

Key takeaways

India raised toy import duties to 60 percent in 2020 and 70 percent in 2023.
BIS quality standards became mandatory in 2021.
Imports fell sharply and exports rose.
Critics cite higher prices and less variety.