Representational file image.
| Photo Credit: V. Raju

India can target $ 25 billion exports in the next 10 years and generate 35 lakh jobs with 10% market share in power tools and 25% market share in hand tools, according to NITI Aayog’s report on “Unlocking $25+ Billion Exports: India’s Hand & Power Tools Sector,” which was released here on Tuesday.

The report noted that there is a transformative potential of hand and power tools industry for the country’s economic growth. The report also outlines a strategic path for the sector to enhance its global competitiveness and capture a larger share of the international market.

The global trade market for power and hand tools is currently valued at approximately $ 100 billion and is projected to reach around $ 190 billion by 2035. “Within this market, hand tools account for $ 34 billion and are expected to expand to $ 60 billion by 2035, while power tools, including tool accessories, represent $ 63 billion and are anticipated to surge to $ 134 billion, with electrical tools comprising the majority. China dominates global exports, holding about 50% of the hand tools market with $ 13 billion and 40% of the power tools market with $ 22 billion, whereas India has a smaller presence, exporting $ 600 million in hand tools (1.8% market share) and $ 470 million in power tools (0.7% market share),” the NITI Aayog said.

The report said India has the potential to capture a larger share of the global market, targeting $ 25 billion in exports over the next decade, which could create approximately 35 lakh jobs by achieving a 10% market share in power tools and 25% in hand tools. “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 potential rewards for Indian economy and its people are immense,” the report said.

The report also analyses the challenges which India may face, including a 14-17% cost disadvantage compared to China, driven by higher structural costs and smaller operational scale. “This disadvantage stems from elevated raw material costs, such as steel, plastic, and motors, as well as lower labour productivity due to higher overtime wages and restrictions on overtime hours. Furthermore, higher interest rates and logistics costs for transporting goods from inland states to ports further hinder India’s competitiveness in the global market,” the report said.