Why India’s $3 Billion Toy Story is Good News for the UAE — and the Global Market

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The India-UAE Comprehensive Economic Partnership Agreement (CEPA) granted zero-duty access to the UAE market for India-made toys. This initiative rode on the back of the 2020 directive by Indian Prime Minister Narendra Modi to boost local manufacturing in the toys sector, and, subsequently, increase exports.

Today, in India, toy imports have already been reduced by over 50%, whereas exports have increased by a whopping 240%.

The new scenario allows India to actively push for toys exports to the UAE — and the rest of the world. Toy Biz 2025 will be held in New Delhi between 4 to 7 July to underscore this exponential opportunity and showcase the sector.

The exhibition, likely to be attended by Piyush Goyal, Minister of Commerce and Industry (he attended last year’s edition), will host nearly 400 Indian brands, all eager to display India’s evolving toy production prowess. And international procurers will have a chance to source inventive and premium-quality toys directly from Indian manufacturers.

“Toy Biz 2025 will not only underscore the impressive expansion in domestic manufacturing but also accentuate the escalating emphasis on excellence, innovation, and safety benchmarks,” said Ajay Aggarwal, President of the Toy Association of India (TAI), that represents the interests of toy manufacturers, suppliers, and retailers in India.

India exports soft toys, sports toys, building development toys, educational toys, board games and puzzles, musical toys, and electronic toys. Government initiatives such as amplified tariffs on inbound shipments (escalating from 20% to 70% between FY20 and FY24) and stringent Quality Control Orders (QCOs) enacted in January 2021 have palpably reshaped trade patterns. The resolve to nurture a robust indigenous toy manufacturing foundation is further emphasized by the National Action Plan for Toys (2020), which aims to galvanize local production, champion homegrown toys brands like Ok Play, Jammbo, Playgro, ToyPlus, Ankit Toys, Smartivity, Funskool, Girnar, Funzoo Toys, Frank, Skillmatics and many more, and also evolve toys into learning tools. Finance Minister Nirmala Sitharaman’s recent announcement of a bold new scheme to supercharge India’s toy manufacturing sector marks a strategic leap in establishing the nation as the world’s next great toy hub.

The UAE is a significant global toy importer, ranking among the top 10 in the world. The UAE market can avail of advantages like shorter shipping times from India, stringent quality control, lower ocean freight costs, and the ability for buyers to visit factories within a day’s travel. “The UAE toy market has seen notable improvements in the quality and range of Indian toys, but for India to truly break into the premium 35% segment, the focus must shift to local innovation, stronger branding, and building a global identity beyond just being a supplier,” said Syed Adil Qamar, Head – Sales & Operations, Rosman Trading LLC Middle East, a toy distribution company based in Dubai. – Sushmita Bose is a consulting editor with NRIFocus.com

 

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