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.