释放250多亿美元的出口潜力——印度的手动和电动工具行业

UNLOCKING $25+ BILLION EXPORTS:INDIA’S HAND & POWER TOOLS SECTOR FoundationforEconomicDevelopmentOkhlaPhaseIII,NewDelhi-110020 Ramesh MangaleswaranBoardChairTele:01140039300Email:info@fedev.org MESSAGE Heavy and engineering goods form the backbone of any country’s manufacturing sector, serving asessential capital inputs across industries and offers asignificant opportunityfor exports.Among engineeringgoods,toolsrepresentacrucialcategory—characterized bytheirlowcomplexity,laborintensityandbroad Overthepasttwodecades,Indiahasexperienced steadygrowth inhandtoolsmanufacturing,driven byimprovements in its manufacturing ecosystem and the entrepreneurial ambition of Indian players. However,despite these positive developments, several structural challenges hinder India’s ability to scale andcompete effectively in the global market. High raw material costs, expensive financing options, andinefficiencies in laborand land utilization duetostringent regulatoryrequirementsposesignificant barriers RecentgeopoliticalshiftshavecreatedanopportunemomentforIndiatoact.TheU.S.hasadoptedafirmstance on import duties for Chinese goods, and Vietnam has emerged as astrong competitor in power toolsmanufacturing.Global markets areactivelyseeking alternatives toChinatodiversify and de-risk their supply This report delves deeper into India’s competitive challenges and explores key policy and industryinterventions required to scale up production, attract investment,and strengthen its globalpositioning. Itrustthat this report will contribute to overcoming the existing obstacles and support effective Preface India stands at a defining juncture in its economic journey, poised to harness its latent potentialand emerge as a global leader in manufacturing and trade. The tools industry,encompassing handandpower tools,represents acritical yet underexploredavenue for thistransformation. As thebackbone of the global manufacturing ecosystem, tools enable production across sectors, frominfrastructureto automotive,and hold the key to unlocking significant economic value.It is The genesis of this report lies in a recognitionof India’s unique strengthsi.eabundant low-costlabour,a growing manufacturing base,and strategic trade positioning—juxtaposedagainst its modestglobalpresenceinthetoolssector.Whiletheglobaltrademarketfortoolsstandsat~$100billionin 2022,projectedtoreach$190billionby2035,India’sshareremainsafraction,with exportsof$600millioninhandtoolsand$425millioninpowertools.China’snear-50%market dominanceunderscoresthescaleofthechallenge,yetrecentshifts,suchas Ourobjectiveisclear:tocreateacompetitiveecosystemthatempowersIndia’stoolsindustryto thrive globally. Thechallenges are multifacetedsuch ascost disadvantages, limited technicalknow-how,andinadequateinfrastructure,buttheyarenotinsurmountable.Throughthisreport, wepropose a strategic framework anchored in three pillars: building world-class industrial clusters, AswereleasethisreportinApril2025,wearemindfuloftheurgency.Thetoolsindustryisnotmerely an economic lever; it is a catalyst for inclusive growth, empowering small and mediumenterprisesandregionslikePunjabandMaharashtra.Weinvitepolicymakerstoactdecisively,industry to innovate boldly, and partners to collaborate earnestly.Together, we can transform ExecutiveSummary1Chapter-1:IntroductiontoToolsIndustry5Chapter-2:GlobalMarketSizeandTrends6Chapter-3:GlobalSupplyChain7Chapter-4:GlobalMarketOverview8Chapter-5:OpportunitiesinExportsMarketsandGlobalTradeBarriers9Chapter-6:India’sToolIndustry10KeyProducts Exported10KeyExporters10Chapter-7:India’sPotential toExpand12Chapter-8:TheToolsOpportunity13Chapter-9:ChallengesFacingtheToolIndustry14CostCompetitiveness14TechnicalKnow-How19LimitedAvailabilityofLandforClusterExpansion20Chapter-10:GovernmentSchemesareLimitedbyAmountsandApplicability21CentralGovernmentSchemes21PunjabGovernmentSchemes21MaharashtraGovernmentSchemes23Chapter-11:KeyPolicyInterventions24CreateWorldScaleandWorldClassClustersforHandTools24ReduceFactorMarketDisabilitiesThroughStructuralReforms27FactorMarketInterventionsWouldBridgetheCostDisabilityintheHandandPowerToolsSector28KeyPolicyRecommendationsandConclusion31Appendix34Acknowledgement39 Unlocking$25+BillionExports:India’sHand&PowerToolsSector ExecutiveSummary Thetoolsindustry,encompassingbothhandandpowertools,servesasafoundationalpillarofthe global manufacturing ecosystem, enabling production across a wide array of sectors, fromconstructiontoautomotiveandbeyond.Thereport“Unlocking$25+BillionExports:India’sHand & Power Tools Sector,” jointly published by NITI Aayog and the Foundation for EconomicDevelopmentinApril2025,underscoresthetransformativepotentialofthisindustryfor GlobalMarketOverviewandTrends The global tools market is segmented into hand tools and power tools, with distinct growthtrajectories and competitive landscapes. As of 2025, hand tools account for $34 billion of the~$100 billionofmarket, expected to grow to $60 billion by 2035. Power toolsincluding to