The Govt of India through the Ministry of SSI launched the National Programme for the Development of Toy Industry (NPDTI) during September 2000 in association with UNIDO, SIDBI & The Toy Association of India (TAI).

The NPDTI programme was visualised keeping in mind the vast export potential of the Toy Industry and the immediate need to upgrade the industry for better quality and price competitiveness in the international market. As the Toy Industry did not have any facility for toy development, testing etc., the proposal to establish Toy Design & Development Institute was approved.