India's Emerging Role in Global Tools Export Market: Niti Aayog's Vision for $25 Billion Industry

India's tools industry, facing challenges like high costs and inadequate infrastructure, has a chance to become a global export powerhouse. A Niti Aayog report outlines essential interventions to capture a $25 billion market by 2035, capitalizing on the US-China tariff situation and fostering local development.

The US tariffs on Chinese imports and escalating costs present India with a unique opportunity to redefine its position in the global tools export market, according to a Niti Aayog report. The report highlights strategic measures like establishing world-class clusters and offering bridge support to tackle cost disabilities in promoting the domestic tool industry.

The report, titled 'Unlocking $25+ Billion Exports: India's Hand & Power Tools Sector', emphasizes India's potential in the tools sector, currently hampered by infrastructural challenges and high manufacturing expenses. The global tools trade, estimated at USD 100 billion in 2022, is projected to reach USD 190 billion by 2035. Despite China's current dominance, recent market shifts offer India a precious chance to redefine its role, aiming at a USD 25 billion export capacity by 2035.

Key recommendations include forming four industry clusters across 4,000 acres, enhancing production efficiency, and drawing investment through a public-private partnership model. Additionally, the report advocates for labor law reforms to reduce costs and improve competitiveness. The proposed changes aim not only to boost exports but also to create millions of jobs and fortify India's position as a global manufacturing leader.

(With inputs from agencies.)