India’s bid to become a major toy manufacturing hub with contracts from global brands like Hasbro and Mattel has hit an unexpected roadblock as steep tariffs imposed by the United States complicate export plans. Three years ago, Indian makers invested heavily in modern factories near Bengaluru, hoping to capitalise on shifting supply chains and rising demand for toys made outside China. These facilities promised jobs, rapid growth, and a stronger foothold in global markets.

However, punitive tariff hikes by the US — reportedly up to 50 % on Indian toy exports — have dramatically increased costs for American buyers, slowing new orders and leaving millions of dollars’ worth of inventory stranded in warehouses. With expansion plans stalled, factories that once doubled in size every two years now face idle lines and rising uncertainty.

The situation illustrates the fragility of export-oriented strategies when global trade policies shift abruptly. While India’s domestic toy industry has grown, and government initiatives have boosted local production and reduced reliance on imports, the impact of unpredictable tariffs has raised questions about how quickly India can pivot to serve major markets like the US. For many manufacturers, the focus may increasingly turn toward strengthening the domestic market and diversifying export destinations as they adapt to the new trade reality.