NITI Aayog Report Highlights India's USD 25 Bn Export Potential In Hand & Power Tools Sector

(MENAFN- KNN India) New Delhi, April 16 (KNN) NITI Aayog released a comprehensive report on Tuesday titled "Unlocking $25+ Billion Exports: India's Hand & Power Tools Sector," highlighting the economic potential of this industry.

According to the report, India could target USD 25 billion in exports over the next decade while generating approximately 3.5 million jobs by capturing 10 percent of the global power tools market and 25 percent of the hand tools market.

The report emphasises the transformative potential of the hand and power tools industry for India's economic growth. It presents a detailed framework for India to secure a larger share of the international market through targeted interventions and policy support.

Global trade in power and hand tools currently stands at approximately USD 100 billion and is projected to reach USD 190 billion by 2035.

Within this expanding market, hand tools account for USD 34 billion and are expected to grow to USD 60 billion by 2035. Power tools, including accessories, represent USD 63 billion and are forecasted to surge to USD 134 billion, with electrical tools comprising the majority of this segment.

China currently dominates global exports in this sector, commanding approximately 50 percent of the hand tools market with USD 13 billion in exports and 40 percent of the power tools market with USD 22 billion.

In contrast, India maintains a relatively modest presence, exporting USD 600 million in hand tools (1.8 percent market share) and USD 470 million in power tools (0.7 percent market share).

The NITI Aayog report identifies several challenges that India must address to realise its export potential.

These include a 14-17 percent cost disadvantage compared to China, driven by higher structural costs and smaller operational scale.

This disadvantage stems from elevated raw material costs for components such as steel, plastic, and motors, as well as lower labor productivity due to higher overtime wages and restrictions on overtime hours.

Additionally, higher interest rates and logistics costs for transporting goods from inland states to ports further diminish India's competitiveness in global markets.

Despite these challenges, the report suggests that by fostering innovation, empowering MSMEs, and strengthening the industrial ecosystem, India can establish itself as a reliable, high-quality global manufacturing hub.

The report concludes that successful development of this sector would yield substantial benefits for the Indian economy and its citizens.

(KNN Bureau)

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