India's Hand and Power Tools: A $25 Billion Export Vision

The global power and hand tools market is valued at USD 100 billion and set to grow to USD 190 billion by 2035. India, lagging in exports, has potential to expand significantly, capturing a USD 25 billion market share. Yet, challenges like higher operational costs impede progress.

The global market for power and hand tools, pegged at USD 100 billion, is anticipated to nearly double, reaching an estimated USD 190 billion by 2035, as indicated in a report from NITI Aayog. This detailed document titled 'Unlocking USD 25+ Billion Export Potential - India's Hand & Power Tools Sector' notes that while current hand tools value is USD 34 billion, it might expand to USD 60 billion. Meanwhile, power tools, a USD 63 billion slice of the pie today, could swell to USD 134 billion, largely dominated by electrical tools.

A stark contrast is evident with China leading the pack, controlling roughly half of the hand tools exports at USD 13 billion and 40% of power tools exports at USD 22 billion. India's footprint remains modest, with hand tools exports at USD 600 million and power tools at USD 470 million. Nevertheless, the report underscores ways to pivot this trend, aiming for USD 25 billion in exports over a decade, potentially generating 35 lakh jobs, positioning India as a formidable manufacturing hub.

The analysis further outlines hurdles, revealing a 14-17% cost disadvantage compared to China due to heftier raw material costs and lower operational scale. Additional barriers include high interest rates and substantial logistics costs, both impinging India's global stance. Key interventions are suggested to steer the nation towards realizing its USD 25 billion export ambition within a decade. These steps aspire to uplift India's hand and power tools sector, fortifying its global competitiveness.

(With inputs from agencies.)