Tamil Nadu, India, is set to establish itself as a global hub for toy manufacturing with the introduction of the Tamil Nadu Toy Manufacturing Policy 2025. This initiative aims to capitalize on the booming global toy market, which is expected to grow from $180 billion in 2024 to $265 billion by 2028. Currently, India's share in this market is less than 1%, valued at $1.7 billion. The policy, unveiled in December 2025, seeks to attract at least 10 anchor players and establish a dedicated toy manufacturing park, promoting traditional toy clusters and innovative design studios. With a focus on enhancing the manufacturing ecosystem, the policy supports the production of toys that foster experiential learning and cater to children with special needs. Additionally, it provides financial assistance for acquiring Geographical Indication (GI) tags for traditional toys. The state's historical expertise in toy-making, coupled with recent import restrictions on foreign toys, has created a favorable environment for local manufacturers. Companies like Funskool India and Veva Toys Global are already benefiting from these changes, highlighting the potential for employment generation and export-led growth. The policy is expected to significantly reduce future toy imports from China and enhance Tamil Nadu's brand value in the global toy market.