+
India targets $25B in tool exports by 2035: NITI Aayog
POWER & RENEWABLE ENERGY

India targets $25B in tool exports by 2035: NITI Aayog

NITI Aayog has released a report titled Unlocking $25+ Billion Export Potential – India’s Hand & Power Tools Sector, highlighting a roadmap to scale India’s tool exports and strengthen its manufacturing ecosystem.

The global tools market is set to grow from $100 billion to $190 billion by 2035. India currently holds a small share—$600 million in hand tools (1.8 per cent) and $470 million in power tools (0.7 per cent)—while China dominates with nearly 50% market share.

The report estimates India can reach $25 billion in exports over the next 10 years by targeting 25 per cent of the hand tools market and 10% of the power tools market, potentially generating 3.5 million jobs. However, India faces a 14-17 per cent cost disadvantage versus China due to higher raw material costs, lower labour productivity, and high logistics expenses.

Key recommendations:

World-class tool clusters: 3–4 mega clusters covering ~4,000 acres under the PPP model with integrated infrastructure and housing.

Structural reforms: ease QCOs, rationalise import duties, and streamline EPCG and labour laws.

Bridge cost support: Rs 80 billion may be needed if reforms delay; seen as an investment with 2–3x tax returns.

The tools industry is a core enabler of manufacturing and crucial to India’s ‘Make in India’ goals. Strengthening this sector could help position India as a global manufacturing hub by 2047 under the Viksit Bharat vision.

NITI Aayog has released a report titled Unlocking $25+ Billion Export Potential – India’s Hand & Power Tools Sector, highlighting a roadmap to scale India’s tool exports and strengthen its manufacturing ecosystem. The global tools market is set to grow from $100 billion to $190 billion by 2035. India currently holds a small share—$600 million in hand tools (1.8 per cent) and $470 million in power tools (0.7 per cent)—while China dominates with nearly 50% market share. The report estimates India can reach $25 billion in exports over the next 10 years by targeting 25 per cent of the hand tools market and 10% of the power tools market, potentially generating 3.5 million jobs. However, India faces a 14-17 per cent cost disadvantage versus China due to higher raw material costs, lower labour productivity, and high logistics expenses. Key recommendations: World-class tool clusters: 3–4 mega clusters covering ~4,000 acres under the PPP model with integrated infrastructure and housing. Structural reforms: ease QCOs, rationalise import duties, and streamline EPCG and labour laws. Bridge cost support: Rs 80 billion may be needed if reforms delay; seen as an investment with 2–3x tax returns. The tools industry is a core enabler of manufacturing and crucial to India’s ‘Make in India’ goals. Strengthening this sector could help position India as a global manufacturing hub by 2047 under the Viksit Bharat vision.

Related Stories

Gold Stories

Next Story
Real Estate

Peninsula Land launches 19 luxury villas in Pune

Pune’s residential landscape is witnessing a shift as premium homebuyers increasingly seek larger spaces, privacy and independent living options beyond high-rise apartments. Addressing this demand, Peninsula Land Limited, part of the Ashok Piramal Group, has launched AshokVillas, an exclusive collection of 19 premium furnished villas in Gahunje, Pune.The development combines the independence of a standalone home with the convenience and security of a managed residential community. Designed around low-density horizontal living, AshokVillas offers residents private spaces while providing acces..

Next Story
Infrastructure Urban

MyBranch Expands South India Network with 16 Workspace Centres

MyBranch has expanded its South India presence with a 50,000 sq ft flexible workspace network comprising 16 centres across 14 cities in Andhra Pradesh, Karnataka, Tamil Nadu and Telangana.The expansion reflects growing demand for flexible office infrastructure as businesses establish regional teams, satellite offices and operations beyond traditional metropolitan markets. MyBranch’s network spans Bengaluru, Coimbatore, Guntur, Hanamkonda, Hubballi, Hyderabad, Madurai, Mangaluru, Rajahmundry, Salem, Tirupati, Vellore, Vijayawada and Visakhapatnam, with a large office space in Chennai also und..

Next Story
Building Material

Walplast Launches Moisture-Resistant Gypsum Plaster Solutions

Walplast Products Pvt. Ltd. has expanded its HomeSure GypEx portfolio with the launch of GypEx MoistShield and GypEx Gold, two gypsum plaster solutions designed to address moisture-prone applications and improve plastering efficiency.The new products have been developed in response to the growing demand for faster construction processes, improved material performance and consistent surface quality. The solutions aim to simplify interior plastering while addressing specific application requirements across construction environments.“Through HomeSure GypEx MoistShield and GypEx Gold, we are exp..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code