Reuters has reported that a government statement issued on Friday did not give details but industry officials said the order would ban imports of almost all toys from China in the public interest.
The Toy Association of India's president, Raj Kumar, said the ban would severely hit imports of Chinese toys, but Indian authorities had likely taken the step in the interest of the economy.
Kumar said: "You see Chinese toys everywhere. The good, upper-end toys are made in India, but the cheap toys in the street and small shops were being dominated by them. They are bringing in toys without safety norms."
Kumar also said there had been discussions between toy manufacturers and the government about increasing import taxes on Chinese toys, but he was not expecting a ban.
The ban covers wheeled toys, dolls, stuffed toys, toy guns, wooden and metal toys, musical instruments, electric trains and puzzles.
The Toys Manufacturers Association of India said it was pleasantly surprised by the decision, which came following demands from local companies for protection from Chinese manufacturers.