Sanil Nanda, the president of the Toy Association of India, has said that the demand of Indian toys is growing between 15 and 20 per cent a year.
Nanda attributes the growth to toys to the fact they are now becoming a lifestyle product in the region but believes the industry need to focus on corporate promotion and merchandising to continue the growth.
Chinese toys remain dominant in the Indian market, but Nanda believes high import duty and the dwindling situation of the rupee against the dollar has allowed the Indian market to bounce back from the threat of the cheaper Chinese toys.
"China is becoming a consumer market rather than a global manufacturing hub," Nanda told the Indo-Asian News Service.
A study carried out by industry body Assocham found the size of India’s toy industry may touch Rs. 13,000 crore by 2015 compared with Rs.7,500 crore in 2012.
The industry also did good business at the seventh edition of Toy Biz International, a business-to-business fair that saw a 7,000 footfall this year.
"Toys are now one of the high priority products for the upwardly mobile middle class," added Nanda.
"The exhibition was a good opportunity to showcase our products and this year we have done around Rs.600 crore of new businesses,"
The Indo-Asian News Service states that the Indian toy industry is currently worth Rs.7,500 crore ($1.65 billion) and employs around 2.5 million people.