US tariffs on Chinese imports create 'golden opportunity' for Indian toy makers

NEW DELHI: Indian toy exporters are looking to tap into a "golden opportunity" created by the US imposing high tariffs on Chinese goods, as more American buyers search for alternative suppliers to reduce their dependence on China.

"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," the Toy Association of India President Ajay Aggarwal's told news agency PTI.

At present, roughly 20 firms are engaged in large-scale toy exports to the American market he stated. "We are getting more enquiries from US-based toy buyers in the last 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," Aggarwal continued.

"They are looking for white labelling and original equipment manufacturers capable of meeting the compliance requirements of the American toy market," he added.

GMI Research indicates that the US toy market reached $42.8 billion in 2024, with projections suggesting growth to $56.9 billion in 2032, showing a CAGR of 3.6 per cent from 2025-2032, driven by increasing demand for educational and interactive toys.

"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," the Toy Association of India President said..

The association plans to conduct a seminar "very soon" with export-ready manufacturers, noting this as "a golden opportunity for Indian toy manufacturers as the US is the biggest toy market in the world".

Aggarwal further said that with governmental support, the domestic toy industry could enhance its exports, which currently represent less than 1 per cent globally.