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India cuts toy imports from China after tariff hikes

Toy imports dropped from nearly $300 million in 2020 to $100 million this year, while exports rose from about $129 million to $200 million.

Reported · Written up by our desk · Trade & Tariffs

BBC Business reports that India has sought to reshape its economic relationship with China by using tariff policy in the toy market. It raised tariffs on imported toys from 20% to 60%, then to 70%, aiming to support local manufacturing and keep lower quality imports out.

The outlet says the approach worked, with Indian toy imports falling by a third, from nearly $300 million in 2020 to $100 million this year. Over the same period, toy exports rose from around $129 million to $200 million.

According to BBC Business, India has also reduced dependence on China, which previously held a 70% share of the local toy market. The report frames the toy sector as a rare exception amid broader, and largely unsuccessful, efforts to rebalance India’s trade relationship with China.

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