MADURAI: Chief Minister MK Stalin on Sunday announced Toy Manufacturing Policy 2025 during the ‘TN Rising Investment Conclave’ in Madurai. The policy positions the state to emerge as a global hub for design, development and production of new-age toys. It aims to attract leading domestic and international manufacturers while simultaneously reviving the state’s centuries-old artisanal toy traditions.
According to the policy, the global toy sector estimated at $180 billion in 2024 and India holding less than one per cent market share, the state views the industry as a high-growth opportunity.
The policy seeks to bring at least 10 anchor players to Tamil Nadu, establish a dedicated Toy Manufacturing Park, and promote creative design studios to spur R&D and high-skilled jobs. The government will prioritise futuristic product categories such as STEM toys, electronic and interactive toys, puzzles and board games, action figures and plush dolls.
Investments above `50 crore with a minimum of 50 jobs will qualify for a special incentive package, including fixed capital subsidy, land allotment concessions, stamp duty exemption, training subsidy, quality certification, support for intellectual property creation and electricity tax relief. MSMEs setting up toy units are eligible for capital subsidies up to `1.5 crore, payroll support, IP creation subsidy and interest reimbursement under the MSME Policy 2021.
The policy introduces focused incentives for manufacturers of experiential learning toys and inclusive toys for children with special needs, aiming to strengthen social impact and ensure compliance with global accessibility and safety standards. A 30% payroll subsidy for 12 months will also be offered for creative design studios established in the state. The policy will remain valid for five years and will be implemented through the Industries Department, with SIPCOT as the nodal agency for disbursal and separate facilitation for MSMEs.
TN’s traditional toy heritage forms a core pillar of the policy, which recognises artisanal toys not only as cultural legacies but also as drivers of rural livelihoods. The Vilacheri clay toy cluster in Madurai remains one of the most prominent hubs, known for vibrant terracotta toys passed down across generations. Equally renowned is the wooden lacquerware toy-making belt of Ambasamudram in Tirunelveli, specialising in miniature instruments, kids’ walkers and kitchen playsets. The iconic Thanjavur Thalayatti Bommai – already protected by a GI tag – continues to symbolise the state’s artisanal craft identity.