ENA Sectors 2025-04-16 15:58:38 <p><span style="font-size:14px"><strong>New Delhi, April 16 (KNN)</strong> NITI Aayog released a comprehensive report on Tuesday titled Unlocking $25+ Billion Exports: India's Hand &amp; Power Tools Sector, highlighting the economic potential of this industry. </span></p> <p><span style="font-size:14px">According to the report, India could target USD 25 billion in exports over the next decade while generating approximately 3.5 million jobs by capturing 10 percent of the global power tools market and 25 percent of the hand tools market.</span></p> <p><span style="font-size:14px">The report emphasises the transformative potential of the hand and power tools industry for India's economic growth. It presents a detailed framework for India to secure a larger share of the international market through targeted interventions and policy support.</span></p> <p><span style="font-size:14px">Global trade in power and hand tools currently stands at approximately USD 100 billion and is projected to reach USD 190 billion by 2035. </span></p> <p><span style="font-size:14px">Within this expanding market, hand tools account for USD 34 billion and are expected to grow to USD 60 billion by 2035. Power tools, including accessories, represent USD 63 billion and are forecasted to surge to USD 134 billion, with electrical tools comprising the majority of this segment.</span></p> <p><span style="font-size:14px">China currently dominates global exports in this sector, commanding approximately 50 percent of the hand tools market with USD 13 billion in exports and 40 percent of the power tools market with USD 22 billion. </span></p> <p><span style="font-size:14px">In contrast, India maintains a relatively modest presence, exporting USD 600 million in hand tools (1.8 percent market share) and USD 470 million in power tools (0.7 percent market share).</span></p> <p><span style="font-size:14px">The NITI Aayog report identifies several challenges that India must address to realise its export potential. </span></p> <p><span style="font-size:14px">These include a 14-17 percent cost disadvantage compared to China, driven by higher structural costs and smaller operational scale. </span></p> <p><span style="font-size:14px">This disadvantage stems from elevated raw material costs for components such as steel, plastic, and motors, as well as lower labor productivity due to higher overtime wages and restrictions on overtime hours. </span></p> <p><span style="font-size:14px">Additionally, higher interest rates and logistics costs for transporting goods from inland states to ports further diminish India's competitiveness in global markets.</span></p> <p><span style="font-size:14px">Despite these challenges, the report suggests that by fostering innovation, empowering MSMEs, and strengthening the industrial ecosystem, India can establish itself as a reliable, high-quality global manufacturing hub. </span></p> <p><span style="font-size:14px">The report concludes that successful development of this sector would yield substantial benefits for the Indian economy and its citizens.</span></p> <p><em><strong><span style="font-size:14px">(KNN Bureau)</span></strong></em></p> 41760 https://knnindia.co.in/news/newsdetails/sectors/niti-aayog-report-highlights-indias-usd-25-bn-export-potential-in-hand-power-tools-sector 2025-04-16 15:58:38 knnindia.co.in