Nishant Shah, Stella Joseph, Prakhil Mishra and Shubham Bhandari from Economic Laws Practice (ELP) share advice on entering the Indian toy market, which is forecast to grow at a CAGR of 4.97% to reach USD 4.4b by 2032.
Being one of the fastest-growing economies, the Indian middle class represents a rapidly expanding segment of the population, with Indian families investing heavily in education. This is evident from the projected growth of the educational toys market in India, estimated to expand at a CAGR of 14.0% from 2024 to 2030 (India Educational Toys Market Size, Share & Trends Analysis Report 2024-2030, Grand View Research). This holds a promising opportunity for both domestic and foreign toy manufacturers.
Over the past decade, India has transformed into a prominent sourcing base for international toy brands. Leading global toy brands have sought alternate manufacturing hubs away from China, citing concerns over toy quality and the supply chain risks – and India offers a desirable alternative.
The entry of foreign toy brands into India can progress through various stages, each representing a different level of commitment and investment in the Indian market:
- Stage 1: Appointment for licensee/distributors (non-exclusive/exclusive)
- Stage 2: Entering into a Joint Venture with an existing Indian Toy brand/manufacturer
- Stage 3: Setting up an Indian Limited Liability Partnership
- Stage 4: Setting up a subsidiary in the form of a Private Limited Company
- Stage 5: Setting up own manufacturing unit in India
Foreign toy brands must familiarise themselves with the essential regulatory and compliance requirements before entering the Indian market. These include a Bureau of Indian Standards (BIS) certification, Import-Export Regulations, Legal Metrology and Consumer Protection Laws and Good and Services Tax (GST).
The full feature goes in-depth into the Indian market and explores how companies can successfully enter and expand into the market. To access the article from our May edition, click here.
