NITI Aayog has unveiled a comprehensive report titled “Unlocking $25+ Billion Export Potential – India’s Hand & Power Tools Sector”, outlining strategies to enhance India’s global market share in this sector, aiming for $25 billion in exports and the creation of 3.5 million jobs by 2035.

Key Highlights:

Global Market Outlook: The global market for hand and power tools is projected to grow from $100 billion in 2025 to $190 billion by 2035. China currently dominates this market, accounting for 50% of hand tools and 40% of power tools exports.

India’s Current Position: India exports $600 million in hand tools (1.8% market share) and $470 million in power tools (0.7% market share).

Export Potential: The report identifies an opportunity for India to achieve $25 billion in exports by targeting a 10% market share in power tools and 25% in hand tools, which could generate approximately 3.5 million jobs.

Challenges Identified: India faces a 14-17% cost disadvantage compared to China, attributed to higher raw material costs, lower labor productivity, and elevated logistics expenses.

Strategic Recommendations: The report suggests establishing 3-4 advanced industrial clusters across 4,000 acres, including one in Punjab, to enhance production capabilities and competitiveness.

Policy Support: Proposals include Rs 8,000 crore in financial support, labor and regulatory reforms, and improved infrastructure to bolster the sector's growth.