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.

Next Story
Infrastructure Urban

DDA Approves Rs 87.2 Billion Budget for 2025-26

The Delhi Development Authority (DDA) has approved a budget of Rs 87.2 billion for the financial year 2025-26, with a strong emphasis on civic infrastructure development, green space rejuvenation, housing, and sports facilities, according to an official statement. Chaired by Lieutenant Governor V.K. Saxena, the budget meeting highlighted several large-scale projects, including the revitalisation of the Yamuna floodplain, creation of expansive parks, and upgraded civic amenities. Out of the total outlay, Rs 41.4 billion has been earmarked for capital expenditure, covering new roads, infrastruc..

Next Story
Infrastructure Energy

Vi Taps Cisco to Power Next-Gen Network

Telecom operator Vodafone Idea (Vi) has joined hands with US-based tech major Cisco Systems to revamp its transport network infrastructure across India. The strategic partnership aims to enhance network performance, scalability, and user experience for both retail and enterprise customers. As part of the agreement, Vi will deploy Cisco’s advanced Multiprotocol Label Switching (MPLS) technology to create a high-capacity, software-driven transport network. This will significantly improve the telecom player’s ability to manage surging data traffic and support data-heavy digital services such..

Next Story
Building Material

GPT Infra Commissions New Steel Girder Plant Near Kolkata

GPT Infraprojects announced the successful commissioning of its steel girder and components manufacturing facility in West Bengal on April 24, 2025. Located in Village Majinan, Hooghly district—about 60 km from Kolkata—the plant begins operations with an initial capacity of 10,000 metric tonnes per annum (MTPA). The company stated that the facility is in the process of securing RDSO (Research Designs and Standards Organisation) approval for manufacturing steel bridge girders. Once approved, this unit is expected to become a key asset for the company’s steel bridge segment, catering to c..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?