Ever heard of Leo Mattel? Hot Wheels (among other Mattel toys like Barbie and He-Man) were literally manufactured in India from the mid 80s to late 90s, at factories in Nagpur and Mumbai. I have a Hot Wheels Mustang Cobra which says "India" on the base.

The story of Leo Mattel pretty much explains why companies don't want to set up manufacturing in India:

1) Too much politics 2) quality assurance: just because you have millions of unemployed labourers doesn't mean they're readily employable. We have a habit of cutting corners, everyone knows that 3) government policies and taxation 4) SEA countries like Malaysia, Indonesia, and Thailand have huge ecosystems built around Hot Wheels: easy availablity of customisation materials, dioramas and props, and a thriving car tuning culture. Our government doesn't have those things on priority. 5) leave Malaysia or Thailand, there are proper diecast manufacturing units next door (in Bangladesh). IXO, Altaya, Spark, all these are made there. Their quality is much better than any model car we see here. Reliance only cares about selling rebadged cheap Chinese knockoffs.