Unlocking Rs. 2,13,250 crore (US$ 25 billion) Plus Exports in India’s Hand & Power Tools Sector

The tools industry—comprising hand and power tools—is a foundational pillar of the global manufacturing ecosystem, enabling production across multiple sectors such as construction, automotive, electronics, and infrastructure. India’s hand and power tools sector holds the potential to scale exports from Rs. 8,530 crore (US$ 1 billion) in FY25 to over Rs. 2,13,250 crore (US$ 25 billion) by 2035, according to a joint report by NITI Aayog and the Foundation for Economic Development. The global hand and power tools market is projected to grow from Rs. 8,53,000 crore (US$ 100 billion) in 2022 to Rs. 16,20,700 crore (US$ 190 billion) by 2035. India holds a 1.8% share, i.e., Rs. 5,118 crore (US$ 600 million) in hand tools and 0.7%, i.e., Rs. 3,625.25 crore (US$ 425 million) in power tools exports. The roadmap outlines a vision to capture 25% of global hand tools and 10% of power tools exports, generating an estimated 3.5 million jobs and positioning India as a strategic alternative to China in global supply chains. 

To realise this, the report proposes developing three to four world-class clusters by 2035 across ~4,000 acres, backed by Rs. 12,000 crore (US$ 1.41 billion) in government and Rs. 45,000 crore (US$ 5.28 billion) in industry investment. Additional recommendations include aligning labour laws with international norms, rationalising Quality Control Orders, reforming the Export Promotion Capital Goods (EPCG) scheme, and encouraging domestic Research and Development. If reforms are delayed, a Rs. 5,800 crore (US$ 680 million) bridge support package has been proposed, including subsidies for competitiveness, capital, and logistics. With global trade shifting and tariffs against Chinese goods rising, India’s low-cost labour, rising manufacturing base, and Micro, Small, and Medium Enterprises (MSME)-driven clusters in states like Punjab and Maharashtra offer a timely opportunity to expand exports and strengthen its industrial base. 

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