ATPA contributed to the development of a comprehensive Quality Control Order working together with the Indian Government and local associations. It is also involved in the creation of a roadmap for the growth of the Indian toy industry, to guarantee that Indian children have access to safe and high-quality toys to contribute to their cognitive and physical development.

India Toy Market Overview

Key Highlights

• The Indian toy market experienced a retail value sales decline of 6% in current terms in 2022, reaching INR48 billion.
• The market is forecast to increase at a current value CAGR of 8% (2022 constant value CAGR of 4%) over the forecast period, reaching INR70 billion.
• India’s large population provides a significant consumer base, driving growth in the toys and games market.
• Increasing disposable incomes, a higher standard of living, and improving digital penetration are also expected to drive growth.

Challenges & Lowlights

Stringent Certification & Delays

• BIS Quality Control Order (QCO) requires local factory licensing and batch testing, leading to approval timelines of up to 8 weeks and unpredictable compliance costs
• High Import Duties
  Basic customs duty on toy components and finished goods remains at 60 percent, constraining supply-chain flexibility and increasing landed costs
• Fragmented Supply Base
  Over 90 percent of manufacturing remains in the unorganized sector, with limited availability of domestic raw materials (e.g. quality plastics and paperboard)
• Parallel-Market Risks
  Price-sensitive consumers and low awareness of safety standards fuel the grey market for unregulated, potentially unsafe toys

Areas Where ATPA Can Assist

Regulatory & Compliance Support

• Guide members through BIS licensing and FMCS procedures, and advocate for virtual audits or provisional-certification schemes to ease QCO bottlenecks.
  Market Intelligence & Alerts
• Provide India-focused primers, monthly monitoring reports, and rapid-alert services on policy developments, consultation deadlines, and regulatory changes.

Policy Advocacy

• Use our network to engage DGFT, BIS and DPIIT—submitting formal proposals for clearer QCO guidelines, import-duty relief on critical components, and risk-based testing protocols.

Local Partnerships & Networks

• Connect members with accredited testing laboratories, certified distributors, and emerging toy clusters to streamline market entry and expand local sourcing.

Capacity Building

• Host workshops on educational-toy standards under the New Education Policy (NEP 2020), quality-assurance best practices, labeling requirements, and supply-chain due-diligence.

For more details or to discuss how ATPA can support your India strategy, please contact us.

Please also download our Indian Market Primer in the ‘Publication Section’.