Tariff War: India To Come Out On Top In Toy Exports

Kolkata: As the US-China tariff war intensifies, the Indian toy industry leaders are calling the situation a ‘golden opportunity’ to position India as a major export hub for toys, especially to the United States, a trade body official said on Sunday. The US recently imposed a steep 145 per cent tariff on toy imports from China — a move that could reshape the global toy trade. China, which previously accounted for nearly 77 per cent of US toy imports, is expected to see a significant drop in exports due to the high tariff, opening up space for alternate suppliers, an official said. Akshay Binjrajka, President of the Toy Association of India (TAI), told PTI that India is well-positioned to fill the emerging vacuum.

“The US toy market, valued at around $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. India’s toy exports have already witnessed a steady rise — from $40 million in 2014-15 to an estimated $152 million in 2023-24. More notably, toy imports from China to India have plunged from $235 million in FY20 to just $41 million in FY24, after India imposed strict control norms on imports and boost in domestic sourcing.

“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 Binjrajka, who also chairs the Toy sub-committee at the Bharat Chamber of Commerce. Despite policy tightening, he warned that “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. Binjrajka also appealed to West Bengal Chief Minister 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. "