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TMI BlogTooling Up for the Future: India’s Path to $25 Billion in Exports(Source: https://pib.gov.in/PressReleasePage.aspx?PRID=2123437)X X X X Extracts X X X X X X X X Extracts X X X X ..... Tooling Up for the Future: India’s Path to $25 Billion in Exports(Source: https://pib.gov.in/PressReleasePage.aspx?PRID=2123437) X X X X Extracts X X X X X X X X Extracts X X X X ..... 25+ billion global powerhouse by 2035. This ambitious vision is detailed in the April 2025 report, "Unlocking $25+ Billion Exports: India's Hand & Power Tools Sector", jointly released by NITI Aayog and the Foundation for Economic Development. As global demand for tools accelerates-driven by industrialization, urbanization, and infrastructure development-the stage is set for India to reposition i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tself as a credible alternative to China in this space. Global Context and Opportunity The global hand and power tools market, valued at approximately $100 billion in 2022, is projected to nearly double to $190 billion by 2035. India, however, currently captures only a sliver of this market: * Hand Tools: $600 million (1.8% of global share) * Power Tools: $425 million (0.7% of global share) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... By 2035, India is targeting a 25% market share in hand tools ($15 billion) and 10% in power tools ($12 billion)-a combined export potential exceeding $25 billion. This growth could generate over 3.5 million new jobs, both direct and indirect, across the country. India's Current Export Footprint Hand Tools: A Strong MSME Backbone India's hand tools sector thrives on a robust MSME ecosystem, wit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h major hubs in: * Punjab: Jalandhar, Ludhiana * Maharashtra: Mumbai, Nagpur * Rajasthan: Nagaur These regions specialize in producing wrenches, screwdrivers, hand saws, and pliers-thanks to labor-intensive, skill-based processes that capitalize on localized supply chains and legacy know-how. Power Tools: The Need for Technological Depth While the power tools segment has witnessed export ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... growth, India lacks a comprehensive manufacturing ecosystem for critical components like motors and batteries. Building this capability will be key to achieving the $12 billion export target. Export Markets and Trade Leverage * Top Importers: USA and EU, accounting for 55-60% of global imports * Tariff Advantage: The U.S. currently imposes additional tariffs (7.5-25%) on Chinese tools, creati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng strategic openings for Indian manufacturers * Growth Trend: India's tool exports have grown at 24% year-on-year, highlighting momentum and appetite for expansion Existing Government Support Mechanisms * RoDTEP Scheme * Rebates for exported goods * Hand Tools: 1.1% of FOB value * Power Tools: 0.9% of FOB value * Duty Drawback & DFIA Scheme * Duty-free import of inputs * Duty dra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wback rates: 1.5-2% * Requires minimum 20% value addition and conformity with SION norms Strategic Roadmap to $25+ Billion 1. Build World-Class Tool Clusters * Objective: 3-4 mega clusters by 2035 covering ~4000 acres * Investment: Rs.12,000 crore (Govt) + Rs.45,000 crore (Private) * Features: * Plug-and-play industrial parks * Worker housing, R&D centers, testing labs * 24x7 power ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , logistics support, convention facilities * Governance: Special Purpose Vehicles (SPVs) in PPP mode, state-level cluster authorities 2. Structural and Regulatory Reforms * Rationalize Quality Control Orders (QCOs) and reduce import duties * Modernize Export Promotion Capital Goods (EPCG) scheme * Align labor laws with global norms (e.g., 300 hrs of quarterly overtime) * Improve FAR nor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ms, logistics, and guarantee 24x7 affordable electricity * Invest in domestic R&D and incentivize technology transfers If these reforms are fully implemented, additional fiscal incentives may not be necessary. 3. Contingent Bridge Support (If Reforms Lag) * Total Proposed Support: Rs.5,800 crore over 5 years * Breakdown: * Hand Tools: Rs.3,450 crore * Power Tools: Rs.2,230 crore * Lo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gistics and Capital Subsidy: Rs.450 crore + Rs.300 crore This is not a subsidy, but a strategic investment with a projected return of 2-3x in tax revenues. Conclusion: A Decisive Decade for Indian Manufacturing The next ten years offer a unique window for India to reposition itself as a global manufacturing hub for hand and power tools. With the right mix of policy reforms, infrastructure inves ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tments, and industry collaboration, India can capture a significant share of a fast-growing market while boosting employment and innovation. The vision outlined in NITI Aayog's report is not merely aspirational-it's achievable. The question now is not whether India can unlock this opportunity, but whether it will act decisively to seize it. Read the full report: 🔗 India Hand & Power Too ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ls Sector Report - April 2025 (PDF) X X X X Extracts X X X X X X X X Extracts X X X X
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