With global trade dynamics undergoing a major shift and the US China tariff war opening new opportunities, India’s hand and power tools sector is being seen as the next big export story. A new report by Niti Aayog titled Unlocking $25+ Billion Exports India Hand & Power Tools Sector outlines a roadmap for transforming India into a global tools export hub by 2035.
Despite being weighed down by high manufacturing costs and infrastructural gaps, the Indian tools industry could tap into the projected $190 billion global market if the right steps are taken now. The report emphasizes that China’s dominance in the sector is being challenged by rising costs and trade restrictions, giving India a strategic window to step up.
To meet the ambitious $25 billion target, Niti Aayog recommends setting up four world class industry clusters across 4,000 acres. These clusters would operate on a public-private partnership model and focus on improving production efficiency scaling manufacturing capabilities, and attracting domestic and foreign investments.
The report also calls for policy-level changes including labour law reforms to reduce costs and improve ease of doing business. These reforms are expected to boost competitiveness create millions of new jobs and strengthen India’s position in the global supply chain.
The US tariffs on Chinese tools and the growing need for reliable alternatives in Western markets offer India a rare opportunity to redefine its global trade role. Niti Aayog’s vision aligns with the broader goals of ‘Make in India’ and ‘Aatmanirbhar Bharat’ aiming not only to enhance exports but also to solidify India standing as a resilient and high quality manufacturing destination.
As the global tools market expands India’s strategic policy push and industrial reforms could well turn it into a new global hub for hand and power tools shaping both its economy and its reputation in international trade.
