How India’s traditional toy industry is losing the business game

In Tamil Nadu’s Punnainallur village, 330 kms from Chennai city, in a small, bustling workshop, a third-generation artisan family continues a centuries-old tradition — crafting the iconic Thanjavur dolls. Made from clay, fibre, and immense dedication, these vibrant figurines are more than just decorative items; they are a symbol of Tamil culture and craftsmanship passed down through generations.

Forty-three-year-old Rajendra Prabhu, a veteran artisan, creates 100 dolls every week. Unlike his ancestors, his dolls travel all the way to the UK and the US every year. But over the years, his business has undergone many changes.

“Earlier, dolls were made solely from clay and sold only in temples. They couldn’t be sent abroad as they were too fragile. My grandfather and father couldn’t export dolls because of fragility. Now, my wife Kalaiselvi takes all the pain to sell dolls in the local market and also send packages abroad,” Rajendra Prabhu says smilingly.

Their creations include traditional varieties like the Rajarani doll, dance dolls, Chettiyar dolls, and Golu dolls used during festivals, with their prices ranging from ₹100 to ₹5,000, depending on size and intricacy. Corporate clients, exhibitions, and book fairs — including the Chennai Book Festival — also provide steady business opportunities for the Prabhu family. They earn a minimum of ₹25,000 a month. The income also increases whenever they receive corporate orders or orders for a wedding.

Unlike Thanjavur dolls, another traditional toy variety named Marapachi toys, is facing extinction. Marapachi toys, which are wooden made from red sandalwood, used to be a favourite plaything for kids. Now, with the demand for the Marapachi toys hitting a low, many Marapachi toymakers have altered their craftsmanship.

Rajendra Prabhu and his wife Kalaiselvi

Speaking to The Federal on the challenges of the business, another traditional toy maker 68-year-old, S. Veerakumar, said he received his last order for the toy in February 2024. He makes traditional Marapachi toys that are chemical-free and at the same time, costly too.

“Usually, we create a pair — a male and a female — using red sandalwood. Children would dress up this toy and parents would engage them in storytelling with it. But now, colourful Barbie dolls are easily available for a cheaper price than a traditional Marapachi toy, which would cost a minimum of ₹800. Modern-day toys are very colourful, whereas Marapachi toys are very rigid and not colourful,” explains Veerakumar.

Now, Veerakumar engages in creating kitchen set toys using cheap wood instead of investing money in red sandalwood and wait for orders for months. He gets a few orders ahead of Navratri.

“Marapachi dolls are an indispensable part of Navaratri Bommai Kolu doll arrangements. Marapachi dolls are a proud possession for many people and are handed down through generations. There is also a tradition of parents gifting their married daughter Marapachi Bommai so that she can start Navratri Kolu display in her house. But I do not produce more than 25 sets a year now,” Veerakumar said.

Like Rajendra Prabhu and Veerakumar of Tamil Nadu, several traditional toymakers across India have either upskilled their craft and enriched their lives or faced the end of the tunnel in their craft. India has several places famous for toys.

The hubs for traditional toys include Karnataka, where Channapatna wooden toys are made; Andhra Pradesh where Etikoppaka wooden toys are made; Varanasi where papier-mâché toys are made, Gujarat which is famous for Dhilgli clay toys, Punjab where Chakana whistle toys are made, West Bengal with Krishnanagar clay toys of, and Kashmir which is known for its stuffed woollen dolls.

Recalling her childhood surrounded by traditional toys, cultural historian Meenakshi Devaraj, said that as electronic toys and digital play stations have come into play, traditional toys are losing their importance.

Toys that infused life in playtime

She explained that traditional toys, often carved with serene smiling faces, were more than playthings.

“We dressed them up with handmade jewellery and tiny fabric outfits, often created from scraps or household items. They were handed down through generations with care and sentiment. We used to play with kitchen sets, Pallankuli (a traditional board game of filling pits). Grandparents would spin tales about old toys to the younger generation. But now, playtime is occupied with digital toys and parents do not engage with their children while they are playing,” she said.

She also mentioned that the pandemic lockdown period renewed interest in traditional toys and playthings. “There’s an awareness wave now. Some corporates have started introducing traditional elements in their offerings. We have to create an interface to bring traditional artisans and corporates together to ensure we preserve traditional toys,” Meenakshi tells The Federal.

A research report by market research firm IMARC says the toy industry in India was valued at $1.7 billion in 2023, and is expected to reach $4.4 billion by 2032, exhibiting a growth rate of 10.6 per cent.

Make in India fizzling

The Union government, under its Make in India push, in the FY25 Budget, announced a scheme to make India a global hub for toys by focusing on cluster development. Finance Minister Nirmala Sitharaman, in her Budget speech, said the scheme will focus on the development of clusters, skills, and a manufacturing ecosystem that will create high-quality, unique, innovative, and sustainable toys that will represent the 'Made in India' brand.

She said that while building on the National Action Plan for Toys, the government is keen to implement a scheme to make India a global hub for toys.

But experts say India's toy exports dropped from $177 million in 2021-22 to $152 million in 2023-24 due to an overall decline in global demand for these products.

For over a decade, India heavily relied on China for around 76% of its toy imports. India's import bill for toys from China dropped from $214 million in FY13 to $41.6 million in FY24, leading to a decline in China's share in India's toy imports from 94% in FY13 to 64% in FY24, indicating India’s competitiveness in the international toy market.

“The government’s steps, such as mandatory quality norms and increased customs duties for Chinese toys, have significantly helped domestic toy players to boost manufacturing and reduce dependence on Chinese imports,” the minister said in her speech related to the toy industry.

Meanwhile, toy manufacturers demand relaxation of the Bureau of Indian Standards (BIS) license requirements to support the Micro, Small and Medium Enterprises sector in production. It is to be noted that India banned the sale of toys not certified by BIS in January 2021.

The road ahead

Ajay Aggarwal, president of the Toy Association of India (TAI), told the media that the Indian toy market is growing at over 12 per cent and BIS rules need to be relaxed to support micro, small, and medium enterprises.

“Out of the 6,000-odd toy manufacturing units in the country, only 1,500 have obtained a BIS license. In the MSME sector, the government has relaxed a lot in the last two years. Despite that, it is not manufacturer-friendly. But it is a fact that a lot of startups are emerging, and Gujarat is fast becoming a toy manufacturing hub,” said Ajay Aggarwal.

He said that there is great demand for Indian toys in markets like Africa and the Middle East. Board games, wooden toys, and even plastic cricket bats are among the favourite products in the export market. The key regions for the toy market in India are Maharashtra, followed by Tamil Nadu, Karnataka, Gujarat, Delhi, and other small pockets.

Speaking to The Federal, Tamil Nadu Toy Dealers Association President Santosh Kumar said that Chennai is the capital for the toy market in the southern region and has huge investors in this space.

“The toy industry in Tamil Nadu alone was valued at ₹600 crore, and it can further grow if the government provides land at subsidised rates for both manufacturing and warehousing. Earlier, 90 per cent of toys were imported, of which 75 per cent came from China. Now, imports from China are as good as nothing — at 5 per cent,” he said.

He also pointed out that there is great demand for Montessori learning toys and there are no manufacturers of that kind of toys in many states. “The toy industry in Tamil Nadu alone was valued at ₹600 crore, and it can further grow if the government provides land at subsidised rates for both manufacturing and warehousing,” he added.

Clearly, there is a demand. What is needed is a government will match it up with policy intervention.