NITI Aayog launches Report on ‘Unlocking $25+ Billion Export Potential - India’s Hand & Power Tools Sector’ Global trade market for power and hand tools worth ~$ 100 billion is projected to reach ~$ 190 billion by 2035Aims to achieve ~$ 25 billion exports in the next 10 years; generate ~35 lakh jobsInterventions include building world-class hand tool clusters with advanced infrastructure and addressing structural cost disadvantages through market reforms

Published on 15-Apr-2025 09:59 PM

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NITI Aayog’s Report on India’s Hand and Power Tools Sector: Transforming Global Trade Potential

Introduction

As India enters the global manufacturing hub of Viksit Bharat (2047), the hand and power tools sector stands as a critical pillar, offering significant economic opportunities. This report highlights NITI Aayog’s strategic exploration of India’s Hand and Power Tools Sector, underscoring its potential to drive $25+ Billion in export potential over the next decade.

Understanding NITI Aayog and Its Report

NITI Aayog, an Indian government-backed foundation, has unveiled a comprehensive report detailing India’s Hand and Power Tools Sector. This sector is pivotal for global growth, with tools accounting for $34 billion of the global trade market by 2035, up from $100 billion today. The report identifies opportunities to expand into power tools, electrical tools, and tool accessories, offering a significant market share in both hand and power tools.

Global Trade Context

The global trade market for power and hand tools is projected to grow from $100 billion to $190 billion by 2035. Hand tools dominate at $34 billion ($60 billion by 2035), while power tools reach $63 billion, with electrical tools holding the majority. China leads here, exporting $13 billion in hand tools and $22 billion in power tools, yet India’s share is smaller.

Challenges Faced

Despite global opportunities, India faces challenges like a 14-17% cost disadvantage over China due to elevated raw material costs (e.g., steel, plastic) and lower labor productivity. Higher interest rates further hinder growth, while logistics costs add complexity in shipping goods from inland states to ports.

Interventions Proposed

To overcome these challenges, NITI Aayog recommends three key strategies: enhancing infrastructure for innovation, empowering MSMEs with tools education, and building regional industrial clusters. These interventions aim to strengthen the nation’s position as a global manufacturing hub, driving economic growth and job creation.

Conclusion

India’s Hand and Power Tools Sector holds significant potential in global trade, offering $25 billion in export potential over ten years. By addressing structural issues and advocating for targeted interventions, India can unlock this sector’s full economic potential, fostering growth and creating jobs. This report serves as a strong endorsement of India’s economic policies and global opportunities.

This structured approach ensures clarity and engagement, providing readers with a comprehensive understanding of India’s Hand and Power Tools Sector and its strategic implications.

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