Unlocking India’s $25 Billion Export Potential in Hand and Power Tools Sector: NITI Aayog’s Strategic Roadmap

The hand & power tools sector of India will experience a massive export boost of $25+ billion according to "Unlocking $25+ Billion Export Potential - India’s Hand & Power Tools Sector" which NITI Aayog recently released. India seeks to grow its power tool sector exports to 10% of the world market while aiming for 25% of hand tool exports by 2035 which will generate about 35 lakh employment positions. The analysis reveals Chinese tools compete at 14–17% lower costs yet proposes three essential solutions to develop first-rate tool clusters and resolve industry blockages and provide temporary cost reduction support. The proposed industrial reforms support India to establish itself as a competitive global manufacturing center that delivers reliable products for the international market in line with its Make in India and Viksit Bharat @2047 plans.

Context

• Launch Date: April 16, 2025

• Dominance: China holds 50% of hand tools and 40% of power tools market share.

• Current Export Figures: $600 million (hand tools), $470 million (power tools).

• Global market: Valued at $100 billion (2024), expected to reach $190 billion by 2035.

• India’s Target: $25+ billion exports in 10 years; 35 lakh new jobs.

Key Points

• Sector Significance:

  • Hand and power tools are foundational to manufacturing, construction and DIY sectors.

  • Opportunity to expand “Make in India” and achieve Viksit Bharat@2047 Goals.

• Export Potential & Employment:

  • Achieve 10% global share in power tools and 25% in hand tools can:

  • Boost exports to $25 billion.

  • Create 35+ lakh employment opportunities.

  • Strengthen MSMEs and domestic value chains.

• Current Constraints:

  • Structural cost disadvantages from: 

  • High raw material costs (steel, plastic).

  • High logistics and interest rates.

  • Labour productivity and overtime regulation issues.

• Three Key Strategic Interventions:

  • Cluster Based development

  • Create 3-4 world class tool manufacturing clusters (4,000 acres).

  • Public-Private Partnership (PPP model).

• Market and policy reforms:

  • Rationalize import duties on steel, motors

  • Reform EPCG scheme and reduce regulatory penalties. 

  • Alignment with National Goals:

  • Supports “ Make in India”, employment generation and domestic industrialization.

  • Empowers MSME and boosts global trust in Indian manufacturing quality.

Conclusion

NITI Aayog’s roadmap for unlocking the export potential of India’s hand and power tools sector highlights a pragmatic yet ambitious vision for transforming India into a global manufacturing hub. By tackling cost disadvantages, fostering innovation and building integrated industrial clusters, India can expand its global footprint and create millions of jobs.