India’s Tool Sector: A New Frontier in Global Manufacturing

The hand and power tools industry serves as a critical backbone of global manufacturing, supporting essential sectors like construction, automotive, electronics, and infrastructure. In April 2025, NITI Aayog, in collaboration with the Foundation for Economic Development, released “Unlocking $25+ Billion Exports: India’s Hand & Power Tools Sector.” This report outlines a strategic plan to scale India’s tool exports from the current $1 billion to more than $25 billion by 2035. 

While India’s current presence in the global tools export market remains relatively small, the country holds several competitive advantages—cost-effective labour, favourable trade access, and a steadily expanding manufacturing base. These strengths position India to emerge as a serious contender in the global tools supply chain. 

Snapshot of India’s Export Landscape 

Hand Tools 

India’s hand tools industry is rooted in a well-developed MSME network, with prominent production hubs in states like Punjab (Jalandhar, Ludhiana), Maharashtra (Mumbai, Nagpur), and Rajasthan (Nagaur). Core exports include pliers, wrenches, screwdrivers, and hand saws. The sector’s resilience is driven by labour-centric manufacturing, strong local supply chains, and historical development since Independence. 

Power Tools 

In contrast, India’s power tools segment is still developing, hampered by the absence of a robust electronics manufacturing ecosystem needed for producing key components like motors and batteries. 

The United States and the European Union together account for 55–60% of global tool imports, representing a significant opportunity for India to expand its market share. 

Also Read: These Stocks to Benefit From India’s Growing Retail: Trent, V2 Retail and More 

Conclusion 

India is at a critical point in its journey toward industrial expansion. Although the tools sector is not yet a major player in global trade, it holds substantial promise. The NITI Aayog roadmap calls for a focused push to harness India’s unique strengths—an expanding manufacturing base, skilled labor pool, and supply chain integration—while tackling key structural gaps. 

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