Toy Manufacturing Policy 2025: Tamil Nadu

Tamil Nadu has launched its Toy Manufacturing Policy 2025. The objective is to position the State as a major production hub in India’s fast-growing toy industry. Announced at the Tamil Nadu Investors Conclave in Madurai, the policy aims to attract large investments. It seeks to generate employment and expand domestic capabilities in electronic, electromechanical and innovative toy segments.

Vision and Eligibility for Key Incentives

Recognised as a sunrise sector under the Tamil Nadu Industrial Policy 2021, toy manufacturing will now receive targeted support. This support aims to enhance competitiveness.

Eligibility Highlights:

Investment of ₹50 crore or above
Minimum 50 direct jobs created
Project completion within 3 years to retain incentives

The policy seeks to scale homegrown toy production to reduce imports and integrate local MSMEs into global supply chains.

District-Based Incentive Framework

The incentives vary depending on the district category, encouraging industries to expand beyond metropolitan clusters:

District Category	Fixed Capital Subsidy	Disbursal Duration
A Districts	7%	5 years
B Districts	10%	10 years
C Districts	12%	10 years

Units investing ₹300 crore or more in B and C districts can access a Structured Assistance Package under TNIP 2021. Subsidies are delivered annually once commercial production begins.

Flexible Choice Between Incentive Schemes

Manufacturers can opt for either:

1️⃣ Special Package of Incentives for Toy Manufacturing, or
2️⃣ Special Incentives for Sunrise Sector

— depending on which provides maximum benefit based on location, investment size and long-term growth plans. This flexibility is expected to improve investor confidence and support broader sector diversification.