Global trade market for power and hand tools is projected to register significant growth, reaching around $190 billion by 2035, a NITI Aayog report said on Tuesday.
Currently, the market is valued at approximately $100 billion.
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The report further said hand tools account for $34 billion and are expected to expand to $60 billion by 2035. Power tools, including tool accessories, represent $63 billion and are anticipated to surge to $134 billion, with electrical tools comprising the majority.
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It is to be highlighted that China dominates global exports, holding about 50% of the hand tools market with $13 billion and 40% of the power tools market with $22 billion. India has a smaller presence, exporting $600 million in hand tools (1.8% market share) and $470 million in power tools (0.7% market share).
In its findings, the report said India has the potential to capture a larger share of the global market, targeting $25 billion in exports over the next decade, which could create approximately 35 lakh jobs by achieving a 10% market share in power tools and 25% in hand tools.
“Through fostering innovation, empowering our MSMEs, and strengthening India’s industrial ecosystem, we can solidify the nation’s position as a reliable, high-quality global manufacturing hub,” the report highlighted.
NITI Aayog also highlighted a challenge for India, saying it may face a 14-17% cost disadvantage compared to China, driven by higher structural costs and a smaller operational scale.
To achieve India’s potential of $25 billion in power and hand tool exports over the next decade, the report delves into the issues impacting hand and power tools sectors and recommends three key categories of interventions that are essential.
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