Free trade agreements to give major boost to toy exports: Industry experts

The series of free trade agreements (FTAs) finalised by India, including the ones with the UK and the European Union, will give a major boost to toy exports, according to industry officials.

Under the free trade agreements with the EU and UK, Indian toys will get zero duty access, Toy Association of India Chairman Manu Giota said. At present, the products face about 5-6 per cent import duty in these two markets. “These FTAs will catapult us into the major league, he said, adding that these markets account for about 16 per cent of the country’s total toy exports, which stood at USD 0.35 billion in 2024.

India signed a trade pact with the UK last year, and it will come into force from July 15. The agreement with the 27-nation EU is likely to be signed by December this year and may be implemented next year. Gupta, who is also the CEO of Playgro Toys India, said that huge investments are coming into the sector due to the business-friendly policies of the Narendra Modi-led government.

Playgro has invested about `82 crore to set up a manufacturing capacity in Ujjain.

The company, he said, has employed about 500 people and the number will be increased to 800 soon.

He indicated that one more investment is in the pipeline.

Talking about the free trade agreements, Amitabh Kharbanda, Promotor of Sunlord Group, said that the Indian industry should prepare itself to take advantage of these pacts as it will create massive export opportunities. He said that the UK and the EU have stringent quality standards and regulations which Indian toy makers have to meet to tap into these markets. “We need good testing facilities in India. The government is helping us. The UK and the EU are focusing on sustainability issues,” Kharbanda said, adding that his company is setting up a unit in Bihta in Bihar. To showcase Indian industry prowess in toy sector, Gupta said the association is organising a four-day international exhibition at Bharat Mandapam here from July 4.

Commerce and Industry Minister Piyush Goyal will inaugurate the 17th Toy BIZ International Exhibition.

Over 300 Indian companies are participating in the expo to showcase 400 brands in areas such as educational toys, plastic toys, soft toys, and electronic toys. “We are expecting 20,000 domestic visitors. Participants from regions like Europe, the Middle East, South East Asia, US and South America are expected to attend expo,” Gupta added.