‘Golden opportunity’: Indian toy makers eye bigger share in US market amid China tariff spree

According to the Toy Association of India, around 40 domestic firms have been identified with the potential to export to the US while meeting its stringent compliance requirements.

India’s toy industry is looking to tap into what it sees as a “golden opportunity” arising from the steep tariffs imposed by the United States on Chinese imports. With US buyers increasingly seeking alternative sourcing options to reduce dependency on China, Indian manufacturers are positioning themselves to expand their footprint in the world’s largest toy market.

According to the Toy Association of India, around 40 domestic firms have been identified with the potential to export to the US while meeting its stringent compliance requirements. Currently, about 20 Indian companies are already exporting toys in bulk to the American market, the association’s president Ajay Aggarwal told PTI.

“We are getting more enquiries from US-based toy buyers in the last one month. Some Indian export houses have also got in touch with us seeking a list of the manufacturers who can make toy products as per US rules and regulations. They are looking for white labelling and original equipment manufacturers capable of meeting the compliance requirements of the American toy market,” Aggarwal said.

Data from GMI Research shows that the US toy market was valued at USD 42.8 billion in 2024 and is projected to grow to USD 56.9 billion by 2032, at a CAGR of 3.6 per cent from 2025 to 2032. This growth is being driven by changing consumer preferences, particularly towards educational and interactive toys.

Aggarwal noted that India stands to benefit from the current tariff dynamics. “The US is a big market for toys and we will be benefited if China is subjected to high tariffs and India is on a low tariff. Already about 20 companies from India in the toy sector are exporting to the US in bulk. If we get the benefit of tariff in terms of the rates being lower than other countries, we can increase the presence of Indian toys in the US market,” he told PTI.

To capitalise on the momentum, the Toy Association of India is planning to host a seminar “very soon” with manufacturers ready to cater to the US market. “This is a golden opportunity for Indian toy manufacturers as the US is the biggest toy market in the world,” Aggarwal said.

He added that with government support, the domestic toy sector can significantly increase its export share, which currently stands at less than 1 per cent of global toy exports.