Toy Industry Incentive Scheme 2025 India: ₹13,100 Crore Boost to Revolutionize Manufacturing

India’s toy industry is about to get its biggest boost ever! The government is set to approve a massive ₹13,100-crore incentive scheme aimed at transforming India from an import-reliant market into a global toy manufacturing powerhouse. Here’s everything you need to know about this unprecedented initiative and how it’s reshaping the toy business landscape in 2025.

What Is the ₹13,100 Crore Toy Industry Incentive Scheme?

The proposed scheme by the Department for Promotion of Industry and Internal Trade (DPIIT) is designed to:

• Offer direct incentives to toy manufacturers, based on their turnover and sales.

• Provide partial refunds of customs duty for importing toy-making components, encouraging companies to add more value within India.

• Foster startup innovation in toy design and support modern, smart, and electronic toy production.

Why Is the Government Doing This Now?

India’s transformation in toys is real:

• For decades, most toys were imported.

• Now, after favourable policies, quality controls, and local cluster development, India has started exporting toys to 153 countries!

• The budget announcement in February 2025 called for this scheme as part of the larger “National Action Plan for Toys”, with a vision to make India a global hub for innovative, sustainable, and high-quality toys.

Key Highlights of the New Scheme

1. Direct Industry Incentives
   Manufacturers will get financial incentives directly linked with their performance (turnover/sales), making growth far more lucrative.

2. Customs Duty Refunds
   Companies importing components to make toys here can now benefit from customs duty refunds, pushing them to build more of the toy’s value chain in India.

3. Quality Focus
   The successful implementation of the Quality Control Order (QCO) ensures Indian toys now match and often exceed global safety and quality standards.

4. Support for New-Age Startups
   The government is promoting startup innovation via collateral-free loans under the Pradhan Mantri Mudra Yojana (now up to 20 years), giving fresh businesses a chance to break into the toy sector.

5. Toy Manufacturing Clusters
   The Ministry of MSME has supported 18 dedicated toy manufacturing clusters, making it easier for manufacturers to access resources, technology, and skilled workers.

6. Encouragement for Electronic Toys
   Customs duty on key electronic toy components has been slashed from 70% to 20%, aligning with the move towards smart and high-tech toys.

What Does This Mean for Entrepreneurs?

• Huge Domestic Opportunity: With a vast population, India offers unbeatable scale.

• Focus on Branding & Design: The new scheme emphasizes creative design and brand-building, major opportunities for entrepreneurs thinking beyond just manufacturing.

• Export Potential: Indian-made toys are now reaching 153 countries—your business can go global!

• Easy Access to Finance: Startups and MSMEs have more pathways to funding and resources than ever before.

How to Benefit as a Toy Business

1. Register as a Manufacturer if you haven’t already.

2. Stay updated on DPIIT and Cabinet announcements for official scheme launch details.

3. Align your business with quality standards (QCO) and innovative design.

4. Consider locating your unit within a supported toy cluster for maximum benefits.

5. Highlight “Made in India” in your marketing—it now has serious global weight!

The upcoming ₹13,100-crore government scheme is more than just financial support—it’s a signal that India is ready to dominate the global toy industry. If you’re passionate about toys, entrepreneurship, or the “Make in India” movement, this is your golden era to jump in!

Stay tuned to Neurotainment Business & Trade for more updates, actionable guides, and the latest on how you can leverage this opportunity for your own entrepreneurial journey as the Indian toy story unfolds.