IGI Logo

 Tamil Nadu Chief Minister M.K. Stalin has announced the Toy Manufacturing Policy 2025, charting an ambitious roadmap to position the state as a global centre for the design, development and production of next-generation toys.  

Alongside large-scale manufacturing, the policy also seeks to revive Tamil Nadu’s centuries-old artisanal toy traditions and integrate them with modern supply chains. The policy takes note of the vast global toy market, estimated at nearly $180 billion in 2024, while India’s share remains below one per cent. 

Officials view this gap as a significant high-growth opportunity for Tamil Nadu. To capitalise on it, the state government aims to attract at least 10 anchor investors, establish a dedicated Toy Manufacturing Park, and promote creative design studios to drive research, innovation and the creation of high-skilled jobs. 

Priority will be given to futuristic and high-value product categories such as STEM-based educational toys, electronic and interactive toys, puzzles and board games, action figures and plush dolls. Large investments of over Rs 50 crore that generate a minimum of 500 jobs will qualify for a special incentive package. This includes fixed capital subsidy, land allotment concessions, stamp duty exemption, training subsidy, support for quality certification, intellectual property creation assistance and electricity tax relief. 

Micro, small and medium enterprises (MSMEs) entering toy manufacturing will be eligible for capital subsidies of up to Rs 1.5 crore, along with payroll support, IP creation subsidy and interest reimbursement under the MSME Policy 2021. 

The policy also introduces targeted incentives for manufacturers producing experiential learning toys and inclusive toys meant for children with special needs, aligning social impact with global safety and accessibility standards. 

In a boost to creativity-led enterprises, a 30 per cent payroll subsidy for 12 months will be offered to creative design studios set up in the state. The policy will remain valid for five years and will be implemented through the Industries Department, with SIPCOT acting as the nodal agency for incentive disbursal, alongside separate facilitation mechanisms for MSMEs. 

Traditional toy clusters form a core pillar of the new policy. The Vilacheri clay toy hub in Vilacheri is recognised for its vibrant terracotta creations, while the wooden lacquerware belt of Ambasamudram is famed for miniature instruments, children’s walkers and kitchen playsets. The iconic Thanjavur Thalayatti Bommai, protected by a GI tag, continues to symbolise the state’s rich artisanal heritage, now poised for a global footprint under the new policy.