Summary:

The tool industry, which includes both hand and power tools, is vital to global production across sectors such as construction, automotive, and infrastructure. According to a report by NITI Aayog, India’s exports in this sector are projected to grow from ₹8,530 crore (US$1 billion) in FY25 to ₹2,13,250 crore (US$25 billion) by 2035. With the global market expected to reach US$190 billion, India aims to capture 25% of hand tool and 10% of power tool exports, creating 3.5 million jobs and positioning itself as a strategic alternative to China.

To achieve these targets, the report recommends establishing 3–4 world-class clusters across 4,000 acres by 2035, supported by ₹12,000 crore in government funding and ₹45,000 crore in industry investment. Additional suggestions include aligning labour laws with international standards, easing quality control regulations, reforming the EPCG scheme, and boosting domestic R&D. If reforms are delayed, a ₹5,800 crore support package has been proposed. In a shifting global trade environment, India’s low-cost labour and MSME-driven clusters offer significant potential for export expansion and industrial growth.

Source: IBEF

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