India plans new toy testing labs as exports surge 239% and imports fall 32%. Piyush Goyal targets 10x growth via FTAs, CAD-CAM adoption, and self-reliant supply chains.
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The Indian government plans to set up modern toy testing facilities across major manufacturing clusters, a move aimed at helping domestic producers meet international quality standards and capture a larger share of the $120 billion global toy market. Union Commerce and Industry Minister Piyush Goyal announced the initiative Saturday at the 17th Toy Biz International B2B Exhibition 2026 in New Delhi.
Goyal said the new infrastructure would be developed through the Bureau of Indian Standards (BIS), the National Test House, and other government laboratories. He asked manufacturers to prepare a list of testing equipment needed so Indian-made toys can achieve the highest quality certifications for domestic and export markets.
"The Government would establish modern testing facilities across toy manufacturing clusters in the country," the minister said.
The push comes as India's toy exports have surged 239% over the past four years, while imports have fallen 32%. Domestically manufactured toys once accounted for only about 12% of India's toy market. Now imports have declined to roughly ₹2,500-3,000 crore in a market valued at nearly ₹18,000 crore, with Indian manufacturers supplying the bulk of domestic demand.
More than 50 toy manufacturing clusters have been established across the country, with nearly 21,000 MSMEs operating in the sector.
Goyal encouraged the industry to take advantage of India's growing network of Free Trade Agreements (FTAs) to access developed markets and build globally recognized Indian toy brands. He pointed to duty-free access to European markets and the India-UK Free Trade Agreement, scheduled to come into force on July 15, as significant opportunities for exporters.
He also called on manufacturers to adopt modern production technologies such as Computer-Aided Design and Computer-Aided Manufacturing (CAD-CAM) systems and CNC machining. According to Goyal, these processes will enhance product quality, improve precision, and increase production efficiency, allowing Indian companies to compete more effectively internationally.
To accelerate overseas expansion, the minister assured industry players of support under the Export Promotion Mission. He encouraged companies to participate in global trade fairs, establish warehousing facilities in key export destinations, and strengthen engagement with international brands, retailers, and e-commerce platforms.
Goyal urged greater investment in domestic production of motors, electronics, dies, and moulds used in toy manufacturing. Building a self-reliant supply chain would enhance competitiveness while lowering production costs, he said.
The minister called on manufacturers to target tenfold expansion through stronger branding, better quality, continuous innovation, and increased exports.
For investors tracking India's manufacturing story, the toy sector offers a concrete case study of import substitution and export growth. The combination of testing infrastructure, FTA access, and production-linked incentives creates a framework that could reshape a small but fast-growing segment of the consumer goods market.
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