NITI Aayog launches Report on ‘Unlocking Rs. 2,13,925+ crore (US$ 25+ billion) Export potential - India’s hand & power tools sector’

NITI Aayog has released a report titled “Unlocking Rs. 2,13,925+ crore (US$ 25+ billion) Export potential - India’s hand & power tools sector”. The global trade market for power and hand tools, valued at $100bn, is projected to reach Rs. 16,25,830 crore (US$ 190 billion) by 2035. Hand tools are expected to expand from Rs. 2,90,938 crore (US$ 34 billion) to Rs. 5,13,420 crore (US$ 60 billion). In contrast, power tools, including tool accessories, are anticipated to surge from Rs. 5,39,091 crore (US$ 63 billion) to Rs. 11,46,638 crore (US$ 134 billion). India currently has a smaller presence in the global market, exporting Rs. 5,134 crore (US$ 600 million) in hand tools (1.8% market share) and Rs. 4,022 crore (US$ 470 million) in power tools (0.7% market share). However, the report highlights that India can potentially capture a larger global market share, targeting Rs. 2,13,925 crore (US$ 25 billion) in exports over the next decade. This could create approximately 35 lakh jobs by achieving a 10% market share in power tools and 25% in hand tools. The report suggests that the nation can solidify its position as a reliable, high-quality global manufacturing hub by fostering innovation, empowering MSMEs, and strengthening India's industrial ecosystem.

The report also analyses India's challenges, including a 14-17% cost disadvantage compared to China, driven by higher structural costs and a smaller operational scale. Elevated raw material costs, lower labour productivity, higher interest rates, and logistics costs further hinder India’s competitiveness. The report recommends developing world-class hand tool clusters with advanced infrastructure to achieve the export target, addressing structural cost disadvantages through market reforms, and providing bridge cost support to offset cost disadvantages. The Hand and Power Tools sector represents a significant opportunity to enhance domestic manufacturing and expand the global footprint, augmenting the “Make in India” initiative and accelerating the nation’s economic growth.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.