Indian toy industry to benefit from US tariffs on rivals
What's the story
India's toy industry is preparing to capitalize on high US tariffs on rival nations such as China and Vietnam. Domestic manufacturers are already ramping up production capacity and partnering with global firms. Exporters feel India is well-positioned after the recent spike in US tariffs, as Indian exporters can absorb the impact better than competitors facing higher import duties in America.
Stats
A look at tariffs on other countries
While the US has slapped an additional 27% import duty on Indian toys, countries such as Vietnam are staring at a whopping 46% tariff. Other countries like Bangladesh, China, Indonesia, and Thailand are also staring at high tariffs of up to 54%. This shift in the global trade landscape is likely to benefit India's toy industry immensely.
Market growth
India's toy market projected to grow significantly
The US is the world's largest toy importer, contributing to over 30% of global demand. Although the industry faces challenges, leaders see this as an opportunity to increase exports and make India a key player in the global toy supply chain. The Indian toy market, currently valued at $1.7 billion (2023), is tipped to reach $4.4 billion by 2032, growing at a CAGR of 10.9%, according to the Indian Brand Equity Foundation (IBEF).
Hurdles
Indian toy manufacturers face challenges
Ajay Aggarwal, the President of the Toy Association of India (TAI), sees both opportunities and challenges in the current scenario. Despite the 27% duty on exports to the US, he sees it as an opportunity since Indian toys have lower duties than those from China and Thailand. However, scaling up production capacity continues to be a challenge for Indian toy manufacturers who also have to meet quality standards and branding requirements.