Business

Indian toy industry eyes gains from US tariffs

CityHilights

New Delhi

The Indian toy industry is ready to seize new export opportunities following steep U.S. import tariffs on competitors like China and Vietnam. Industry exporters say domestic firms are expanding production and forming global partnerships to meet growing global demand.

The U.S. has levied a 26% import duty on Indian toys. In contrast, Chinese toys now face a 54% duty, Vietnam 36%, Bangladesh 37%, and Indonesia 32%. This shift has made Indian products more competitive in the American market.

"Vietnam exports about USD 6 billion worth of toys, and China exports USD 80 billion. These items will now face higher U.S. tariffs than Indian toys," said Raj Kumar, CEO of Playgro Toys India. He added that several international companies are exploring options to set up manufacturing bases in India.

India’s toy exports have remained steady at around USD 326–348 million over the past three years. An early bilateral trade agreement with the U.S. could significantly boost export volumes.

States like Madhya Pradesh, Karnataka, Odisha, Haryana, and Bihar are also introducing toy-specific policies to attract investors. Leading global soft and wooden toy brands are now forming joint ventures with Indian manufacturers.

Amitabh Kharbanda, Promoter of Sunlord Group, noted the government's National Action Plan for Toys as a major boost. He stressed the importance of expanding domestic capacities to meet the rising global demand.

Recent government steps, including mandatory quality standards and increased customs duties, have further strengthened domestic production and reduced reliance on imports.

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