Free trade agreements to give major boost to toy exports: Industry
- IBEF
- July 3, 2026
India’s toy industry is set to witness a major export boost following the finalisation of free trade agreements (FTAs) with the UK and the European Union. The agreements will provide Indian toys with zero-duty access to these markets, where imports currently attract duties of around 5-6%. According to industry officials, the UK and EU together account for nearly 16% of India’s toy exports, which stood at Rs. 2,928.87 crore (US$ 0.35 billion) in 2024. The India-UK trade agreement is scheduled to come into force on July 15, 2026, while the India-EU agreement is expected to be signed by December 2026 and implemented next year. Industry leaders believe these agreements will substantially improve the global competitiveness of Indian toy manufacturers and unlock significant export opportunities by reducing trade barriers and expanding market access.
The sector is also witnessing strong investment momentum, supported by the government’s business-friendly policies. Playgro Toys India has invested about Rs. 82 crore (US$ 8.61 million) to establish a manufacturing facility in Ujjain, generating employment for around 500 people, with plans to expand the workforce to 800. The company has also indicated another investment is under consideration. Meanwhile, Sunlord Group is setting up a new manufacturing unit in Bihta, Bihar, to strengthen production capabilities. Industry representatives have emphasised that Indian manufacturers must enhance product quality, testing infrastructure and sustainability standards to fully leverage the opportunities created by the FTAs and strengthen India's position in global toy exports.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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