Niti ayog: The global trade market for power and hand tools, currently valued at approximately USD 100 billion, will grow significantly to around USD 190 billion by 2035, according to a report by NITI Aayog. The report, titled “Unlocking USD 25+ Billion Export Potential – India’s Hand & Power Tools Sector,” highlights that hand tools account for USD 34 billion of the current market and may grow to USD 60 billion, while power tools represent USD 63 billion and may rise to USD 134 billion by 2035. Electrical tools are projected to contribute the largest share within the power tools segment.
The report observes that China dominates global exports in this sector. China holds about 50 percent of the global hand tools market with exports worth USD 13 billion and 40 percent of the power tools market with exports worth USD 22 billion. In contrast, India currently exports USD 600 million in hand tools, representing a 1.8 percent share, and USD 470 million in power tools, amounting to a 0.7 percent share of the global market.
NITI Aayog states that India can expand its market presence significantly by targeting USD 25 billion in exports over the next decade. This goal includes capturing 25 percent of the global hand tools market and 10 percent of the power tools market. “Through fostering innovation, empowering our MSMEs, strengthening India’s industrial ecosystem, we can solidify the nation’s position as a reliable, high-quality global manufacturing hub,” the report states. It adds that achieving this target could generate approximately 35 lakh jobs.
The report identifies a 14–17 percent cost disadvantage for India compared to China. This gap arises from higher structural costs and smaller operational scale. Elevated raw material costs—such as those for steel, plastic, and motors—combined with lower labour productivity due to overtime wage laws and hour restrictions, contribute to this disadvantage. In addition, high interest rates and inland logistics costs affect export competitiveness.
To address these issues, the Niti Ayog report recommends three categories of interventions essential for industry transformation. It outlines a strategic plan to enhance competitiveness and enable India to capture a significant share of the global market. NITI Aayog Vice Chairman Suman Bery launched the report in the presence of Members Dr VK Saraswat, Dr Arvind Virmani, and CEO BVR Subrahmanyam.
(With Inputs From ANI)
