State unveils policy to position TN as toy manufacturing hub
From electricity tax exemptions to reimbursement of IP rights cost, government’s five-year strategy plans to incentivise players
Representative image
CHENNAI: The Tamil Nadu government has released the Toy Manufacturing Policy 2025, a five-year plan aimed at establishing the state as a global centre for toy design, development and manufacturing.
The policy seeks to attract large-scale investments, strengthen traditional toy clusters and expand opportunities for MSMEs and artisans.
A key focus of the policy is on eco-friendly production. Manufacturers are encouraged to use recycled materials and adopt waste-reduction practices to align with global expectations for sustainable manufacturing.
The policy also underscores the need for strict adherence to safety and quality norms. It notes that markets such as the United States and Europe have rigorous safety standards, while in India, toy manufacturers must obtain the Standard Mark and certification from the Bureau of Indian Standards.
To attract major investments, the government has announced a Special Package for toy manufacturing units investing Rs 50 crore and above and generating at least 50 jobs.
The policy offers skilling support through subsidies of Rs 4,000 per worker per month for six months for Tamil Nadu residents, and Rs 6,000 per month for women, transgender persons, individuals with benchmark disabilities and those from SC/ST communities.
Toy manufacturing projects in SIPCOT will be eligible for land at a 10 per cent concessional rate in 'A' and 'B' districts and a 50 per cent concessional rate in 'C' districts, up to 20 per cent of the Eligible Fixed Assets.
To encourage toy clusters in less developed regions, a 50 per cent subsidy on private land cost, capped at Rs 2 crore, will be provided in 'C' districts for up to 50 acres.
The policy also provides 100 per cent stamp duty exemption for units operating on SIPCOT land and 100 per cent back-end reimbursement for units purchasing private land, subject to investment and employment conditions.
A five-year electricity tax exemption will be extended for power purchased from Tangedco or generated and consumed through captive sources.
A major thrust of the policy is the revival of traditional toy-making clusters in Vilacheri, Thanjavur and Ambasamudram. Plans include common facility centres, support for GI registration, design and prototyping infrastructure, e-commerce integration and the promotion of toy tourism.
The Industries Department will implement the policy, with Guidance Tamil Nadu as the nodal agency and SIPCOT as the disbursal authority. The MSME Department will oversee initiatives tailored to artisans.
9 sub-segments for manufacturing
Action figures, collectibles
Dolls, plush toys
Building sets, construction toys
Educational, montessori toys
STEM toys
Electronic, interactive toys
Board games, puzzles
Remote-controlled toys
Infant, toddler toys
Costumes, dress-up
