Toy Association of India Chairman Manu Giota announced that under the free trade agreements (FTAs) with the European Union and the United Kingdom, Indian toys will get zero duty access, according to an Economic Times report. Currently, toys face about 5–6 percent import duty in these two markets. Giota stated, "These FTAs will catapult us into the major league," noting that the EU and UK together account for about 16 percent of India's total toy exports, which stood at USD 0.35 billion in 2024.
FTA Tariff Impact
The FTAs will eliminate the existing tariff barrier, making Indian toys more competitive in the EU and UK markets. The following table summarises the duty change:
| Market | Current Import Duty | Duty under FTA |
|---|---|---|
| EU | 5–6% | 0% |
| UK | 5–6% | 0% |
Industry Reactions and Investments
Playgro Toys India reported that huge investments are flowing into the sector due to business-friendly policies of the Narendra Modi-led government. The company has employed about 500 people and plans to increase headcount to 800 soon. An additional investment is in the pipeline.
Amitabh Kharbanda, Promotor of Sunlord Group, stressed that the Indian industry should prepare to take advantage of these pacts, as they will create massive export opportunities. He emphasised that the UK and EU have stringent quality standards and regulations that Indian toy makers must meet. "We need good testing facilities in India. The government is helping us. The UK and the EU are focusing on sustainability issues," Kharbanda said. His company is setting up a unit in Bihta, Bihar.
Export Volumes and Global Share
India's toy exports reached USD 0.35 billion in 2024, with the EU and UK representing 16% of that total. The United States remains the largest export destination for Indian toys. Giota noted that Indian exports account for only about 0.3 percent of global toy exports, indicating "huge potential is there for us to increase our share."
Toy BIZ International Exhibition
To showcase Indian industry prowess, the Toy Association of India is organising a four-day international exhibition at Bharat Mandapam in Delhi from July 4. Commerce and Industry Minister Piyush Goyal will inaugurate the 17th Toy BIZ International Exhibition. Over 300 Indian companies will participate, showcasing 400 brands in categories including educational toys, plastic toys, soft toys, and electronic toys. Organisers expect 20,000 domestic visitors, with international participants from Europe, the Middle East, Southeast Asia, the US, and South America.
The FTAs, combined with industry investments and growing global interest, position the Indian toy sector for significant export growth. However, meeting EU and UK quality standards remains a critical challenge that requires enhanced testing infrastructure.
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