UP Cabinet Clears Toy Manufacturing Promotion Policy 2025 to Drive Industrial Growth
The Uttar Pradesh Cabinet has approved the notification of the Uttar Pradesh Toy Manufacturing Promotion Policy 2025,establishing a dedicated policy framework for strengthening the State’s toy manufacturing ecosystem and positioning the sector as a structured contributor to industrial growth.
Uttar Pradesh has emerged as an important centre for toy and festival-related product manufacturing. The State contributes approximately 50 percent of India’s exports under HS 9505, covering goods associated with festivals and related cultural products. Districts such as Varanasi, Jhansi and Chitrakoot are recognised for GI-tagged lacquerware and handmade wooden toys, providing livelihood opportunities for artisans, women and rural communities.
The policy seeks to address the predominantly unorganised character of the existing toy manufacturing ecosystem through cluster-oriented development and institutionalised industrial support. Its governance architecture focuses on promoting manufacturing and marketing as potential drivers of regional economic development while ensuring more effective utilisation of skilled, semi-skilled and unskilled human resources.
A significant policy objective is the creation of additional employment opportunities within toy clusters alongside systematic skill development. The framework also provides differentiated support for toy manufacturing units and clusters across MSME and larger industrial categories.
Implementation responsibility has been assigned to the State’s Micro, Small and Medium Enterprises Department, while eligible larger and newly established units can access specified incentives through Invest UP.
The Uttar Pradesh Toy Manufacturing Promotion Policy 2025 is expected to strengthen the state’s manufacturing ecosystem by encouraging investment, expanding domestic toy production and reducing dependence on imported products. The policy can support the development of dedicated toy-manufacturing clusters, improve access to modern technology and promote greater participation of MSMEs in the sector. By creating opportunities across manufacturing, design, packaging, logistics and retail, the initiative could generate employment and strengthen local supply chains. It may also help Uttar Pradesh emerge as a competitive destination for toy manufacturing, while supporting the broader objectives of industrial diversification, export growth and the promotion of locally manufactured products.
The policy consequently represents a transition from fragmented traditional production towards an organised, incentive-enabled industrial ecosystem, combining cluster development, enterprise support, skill formation and market-oriented manufacturing governance.
