Niti Aayog sees a bright future for India’s power and manual tool exports

Representative file image. |Picture source: V. Raju

According to Niti Aayog’s report, India can export at $25 billion in the next 10 years and generate 3.5 million jobs, with a 10% market share of power tools, while hand tools have a market share of 25%, according to Niti Aayog’s report on “Unlocking $25 billion exports: India’s Hand and Power Tools Industry”, which was released on Tuesday.

The report notes that the hand and power tools industry has transformative potential for the country’s economic growth. The report also outlines strategic pathways for the industry to enhance its global competitiveness and occupy a larger share of the international market.

The global trade market for power and hand tools is currently valued at approximately $ 100 billion and is projected to reach around $ 190 billion by 2035. “Within this market, hand tools account for $ 34 billion and are expected to expand to $ 60 billion by 2035, while power tools, including tool accessories, represent $ 63 billion and are anticipated to surge to $ 134 billion, with electric tools comprising the Majority. China dominates global exports, holding about 50% of the Niti Aayog said the hand tools market has $22 billion, accounting for 40% of the power tools market, while India has a smaller business, exporting $600 million in hand tools (1.8% market share) and $470 million in power tools (0.7% market share).

The report said India has the potential to occupy $25 billion in exports over the next decade, which could take up a share of the global market, which could create about 3.5 million jobs by gaining 10% of the market share in power tools and 25% of hand tools. “By promoting innovation, strengthening our MSMES, and strengthening India’s industrial ecosystem, we can consolidate the country’s position as a reliable, high-quality global manufacturing hub. The potential returns for the Indian economy and its people are enormous,” the report said.

The report also analyzes possible challenges India faces, including a 14-17% cost disadvantage compared to China, driven by higher structural costs and smaller operating scale. “The higher costs of raw materials such as steel, plastics and electric motors, as well as reduced labor productivity due to higher overtime wages and overtime restrictions. In addition, higher interest rates and logistics costs for transporting inland states to ports further hinder India’s competitiveness in the global market,” the report said.