As the United States tightens tariffs on Chinese imports, Indian toy manufacturers are preparing to seize what industry leaders are calling a “golden opportunity.” With American buyers increasingly seeking alternative markets to reduce reliance on China, Indian exporters are witnessing a surge in inquiries and demand.
The Toy Association of India has already identified around 40 Indian companies that are well-positioned to meet the stringent compliance requirements of the American market. This marks a significant step in India’s bid to become a global toy hub, especially as the US market opens new doors amid shifting geopolitical trade dynamics.
Surge in Inquiries from US Toy Buyers
Ajay Aggarwal, President of the Toy Association of India, told PTI that approximately 20 Indian companies are currently exporting toys in substantial volumes to the United States. However, that number is expected to rise.
“We’ve seen a noticeable increase in queries from American buyers over the past month,” said Aggarwal. “Some Indian exporters have also approached us, requesting a list of manufacturers capable of adhering to US safety and compliance regulations. Buyers are particularly looking for white-label and OEM (Original Equipment Manufacturer) options from India.”
Aggarwal emphasized that the shift is not just about replacing China but about meeting demand for safer, compliant, and innovative toys. Indian toy makers with robust manufacturing systems and a clear understanding of global compliance norms are expected to benefit the most.
US Toy Market Growth Boosts India’s Prospects
According to a report by GMI Research, the US toy market is projected to hit USD 42.8 billion in 2024 and is expected to grow to USD 56.9 billion by 2032. This growth will occur at a steady CAGR of 3.6% from 2025 to 2032, driven primarily by a rising demand for educational and interactive toys.
This expanding market represents a significant opportunity for Indian exporters. With US buyers diversifying their supply chains and focusing more on quality and innovation, India has the chance to not only increase exports but also build long-term trade relationships in the sector.
India’s Competitive Edge
India’s growing manufacturing capabilities, coupled with government support and tariff advantages, make it an attractive destination for international toy buyers. Aggarwal believes that if the US maintains high tariffs on Chinese goods while offering relatively lower duties to Indian exports, it will significantly boost India’s competitiveness in the toy industry.
“The US is one of the largest toy markets in the world,” Aggarwal said. “If India receives preferential tariff treatment compared to countries like China or Vietnam, we can significantly expand our footprint in the American market. Indian toys, which are already gaining popularity for their design and safety, can become mainstream players in the global supply chain.”
A Strategic Shift in Global Toy Supply Chains
The toy industry’s supply chain is undergoing a global transformation. American retailers and wholesalers, wary of depending too heavily on a single country, are broadening their procurement strategies. India is emerging as a preferred alternative due to its capacity to deliver at scale while maintaining compliance with international standards.
The push is further bolstered by government initiatives like the “Make in India” campaign, which aims to position the country as a global manufacturing hub, including for toys.
Final Thoughts
As trade dynamics continue to evolve, India’s toy industry finds itself at a pivotal juncture. The shift in American buying behavior, driven by geopolitical factors and evolving consumer demands, could help Indian toy makers not only increase exports but also enhance their global reputation for quality and safety.
With the groundwork already laid by key manufacturers and associations, India is gearing up to play a larger role in the global toy supply chain—one toy at a time.
