New Delhi [India], April 18 (ANI): Tools manufacturing sector presents a significant opportunity for India to enhance its export footprint, create jobs, and establish itself as a competitive player on the world stage, a joint report by NITI Aayog and the Foundation for Economic Development asserted.

With a global trade market valued at USD 100 billion in 2022, the tools industry size is projected to reach USD 190 billion by 2035.

According to the joint report launched recently, India's share remains a fraction, with exports of USD 600 million in hand tools and USD 425 million in power tools.

China's has near 50 per cent market dominance in this space.

'This dominance is attributed to its scale of operations, cost efficiencies, and well-established supply chains. However, shifts in global trade dynamics--such as the additional tariffs imposed by the United States on China between 2016 and 2019--have opened opportunities for other nations,' the report noted. 'Vietnam, for instance, has capitalized on this shift, doubling its exports annually, while India's exports have grown at a modest 25 per cent rate.'

Yet it believes that the recent shifts, such as tariffs on Chinese goods and rising costs, offer India a rare window to redefine its role in this niche domain.

The report was published after six months of research, including consultations with industry players and vendors, to distil actionable insights that can propel India toward a 10 per cent share in power tools and 25 per cent in hand tools, generating 3.5 million jobs along the way.

But the joint report realized that there are challenges in the way.

'The challenges are multifaceted such as cost disadvantages, limited technical know- how, and inadequate infrastructure, but they are not insurmountable,' the preface of the report read.

In the report, they proposed a strategic framework encompassing three pillars: building world-class industrial clusters, reforming structural cost barriers, and providing targeted support where needed.

'These interventions, developed with inputs from global best practices and local realities, aim to bridge the 14-17 per cent cost gap with competitors and position India as a hub for high-quality, cost- effective tools,' the report read. (ANI)